HSBC Sees Two Bank of Japan Hikes This Year as Board Dynamics, Inflation and FX Risks Mount
HSBC has adjusted its outlook for Bank of Japan policy, now forecasting two 25-basis-point rate increases in 2026 — a move in June rather than July, followed by another in December — which would raise the policy rate to 1.25% by year-end. The bank pointed to three central factors: the near-term composition of the BoJ Policy Board, persistent inflat…