BOJ Seen Hise Rates in December and Target 2 Percent
The Bank of Japan is projected to raise interest rates in December and continue tightening borrowing costs until reaching a terminal rate of two percent. Former central bank economist Seisaku Kameda notes strong corporate profits will help the economy weather the hikes.
The Bank of Japan will raise interest rates to 1.5% in December and target a terminal rate of 2%, former central bank economist Seisaku Kameda said on Friday. The projected policy tightening follows back-to-back rate hikes in June and September as inflationary pressures mount across Japan. The path to higher borrowing costs tests corporate resilience and consumer spending as import prices climb.
