Bank of Japan Expected to Hold Interest Rates Steady Until July Following December Hike
Economists expect the Bank of Japan to delay rate hikes until July 2026. This follows the December move to 0.75 percent, a level not seen in three decades.
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Economists surveyed by Reuters expect the Bank of Japan to maintain its current interest rate level through the first half of 2026 before implementing a further increase in July. This cautious approach follows the central bank decision in December 2025 to raise the key rate to 0.75 percent, marking a three-decade high for borrowing costs in the country. According to a poll conducted between January 6 and 13, a significant majority of 76 percent of respondents believe the rate will reach at least 1 percent by the end of September.
