Bank of Japan Likely to Raise Rate to 1.75% by March

Dow Jones
3小時前

0421 GMT - The Bank of Japan is likely to raise its policy rate to 1.25% next week, followed by additional increases in December and March to bring the rate to 1.75%, BNP Paribas economists say in a note. The Japanese central bank is probably concerned about upside risks in inflation as companies are likely to pass on higher costs of energy, metals and chips to consumers going forward, the French bank says. That is likely to take place smoothly as the labor market is tight and aggregate demand has increased thanks to the artificial-intelligence boom and the government's fiscal expansion, the bank says.

 

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