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

According to Golden Finance, on March 27, the Bank of Japan’s new estimate of Japan’s natural interest rate indicates that the central bank still has significant room to raise interest rates. The new data suggests that the neutral interest rate could be between 1.1% and 2.5%, while the bank’s current policy 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, providing greater room for the Bank of Japan to raise interest rates further.

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