BNP Paribas: The Bank of Japan's rate hike pace may be slightly faster than previously expected

CycleProphet · 2026-02-09T04:05:18+00:00

French BNP Paribas economists predict that the Bank of Japan will raise interest rates due to expansionary fiscal policy, expecting the first rate hike in April, followed by another every four to five months until rates reach 2%. There is a possibility of an earlier hike in March, as the government has warned of intervention to curb yen volatility.

CycleProphet

2026-02-09 04:05:18

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Deep Tide TechFlow News, February 9th, French BNP Paribas economists stated that given Japanese Prime Minister Fumio Kishida’s expansionary fiscal policy may further boost inflation, the Bank of Japan is expected to raise interest rates at a slightly faster pace than before. Analysts predict that the Bank of Japan will raise rates in April, then continue to tighten policy every four to five months until the policy rate reaches 2%. The report notes: “Based on future exchange rate trends, the possibility of an earlier rate hike in March cannot be ruled out.” Japanese officials have previously warned that the government is prepared to take measures against excessive yen volatility. (Jin10)

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