0817 GMT - The Bank of Japan has limited scope to raise interest rates this year, ANZ Research economist Brian Martin says in a note. He projects the economy will grow 0.8% this year and in 2027, with inflation estimated to average 1.7% this year and 2.0% next year. "Meeting the inflation target is important for Takaichi's economic agenda, as higher inflation raises tax revenues and boosts nominal GDP growth," Martin says. ANZ expects one more 25bp rate increase by the Bank of Japan in 2Q, likely in April, bringing the policy rate to 1.0%. The limited scope the central bank to raise rates will also support a relatively constructive backdrop to the Japanese Government Bond market, he adds. (jason.chau@wsj.com)

(END) Dow Jones Newswires

February 11, 2026 03:17 ET (08:17 GMT)

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