ChainCatcher News, according to Jin10 Data, two members of Barclays FICC Research stated in a research report that the Bank of Japan may raise interest rates in July and December 2026.
These members indicated that this outlook is based on Japan’s “spring wage negotiation cycle.” They noted that the recent rate hikes by the Bank of Japan once again suggest that the wage increases decided during the annual spring negotiations are not only the starting point of the Bank of Japan’s “wage-price cycle” narrative but also the strongest bargaining chip with the Japanese government regarding interest rate hikes.
The members added that the Bank of Japan must also give due attention to the risk of the yen depreciating again, just as it has done so far.