Institution: The Bank of Japan's latest forecast indicates there is still room for further interest rate hikes.

2026-03-27 09:01:16

Odaily Planet Daily News - The Bank of Japan’s new estimate of the natural interest rate in the country indicates that the central bank still has considerable room to raise interest rates. New data suggests that the neutral interest rate may be between 1.1% and 2.5%, while the bank’s current policy interest rate is 0.75%. In a report on Friday, the bank stated that many indicators used in the latest estimate show that interest rates will gradually rise. This means that the upper limit of the neutral interest rate may be further increased, thereby providing the Bank of Japan with greater room for further interest rate hikes. (Golden Ten)

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