Economists at Goldman Sachs, including Akira Otani, project the Bank of Japan is expected to implement another interest rate increase in January 2027, although they note considerable uncertainty surrounds the timing of this next move.

The economist pointed out that with underlying inflation hovering near the 2% target, even minor shifts such as further modest yen depreciation could substantially elevate the risk of inflation exceeding that level.

Otani stated that, as a result, the probability distribution for the timing of the next rate hike is skewed toward an earlier action rather than a later one.

He further added that the actual timing of the rate increase will be "significantly influenced by the progress of communication" with the government.