OECD projects BOJ rate hikes to 2 percent by end of 2027
The OECD expects the Bank of Japan to raise its policy rate to 2 percent by late 2027. It cited solid wage growth and demand as key drivers for further hikes.
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The OECD projected Japan will raise interest rates to 2% by the end of 2027, up from the current 0.75% level. This forecast supports the Bank of Japan as the central bank pursues rate increases backed by domestic demand. Investors face a transition from three decades of near-zero inflation to a regime of rising prices and structural wage growth.
