Former BOJ head Kuroda sees rates hitting 1.5 percent
Former BOJ head Haruhiko Kuroda sees rates reaching 1.5 percent by 2027. He expects multiple hikes and suggests an April increase remains highly probable.
Former Bank of Japan Governor Haruhiko Kuroda has projected a series of interest rate increases for Japan over the next few years. In an interview with the Asahi newspaper, the former central bank chief stated that he sees no issue with the bank raising rates by 0.25% between three and four more times. This would bring the current policy rate of 0.75% to a target of approximately 1.5% by the year 2027. Kuroda suggested that a rate hike during the upcoming April meeting would be a standard expectation under normal conditions. He further noted that geopolitical instability, specifically regarding Iran, would likely serve as a catalyst for faster monetary normalization rather than a reason to halt the process. > The BOJ would hike the policy rate at its April meeting if you think about it normally, as the Iran war would only accelerate interest rate hikes instead of a pause in the monetary normalisation.
