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

ChainCatcher News, 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 expect the Bank of Japan to raise rates in April, then continue tightening policy every four to five months until the policy rate reaches 2%. The report noted: "Based on future exchange rate trends, 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.