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

Odaily · 2026-03-27T12:45:55+00:00

Odaily Planet Daily News: Japan's central bank's new estimate of the natural interest rate indicates that there is still significant room to raise interest rates. The new data suggests that the neutral interest rate may be between 1.1% and 2.5%, while the current policy rate is 0.75%. In a report on Friday, the bank stated that many of the indicators used in the latest estimate show that interest rates will gradually rise. This means that the upper limit of the neutral interest rate could be further increased, providing greater room for the Bank of Japan to raise rates further. (Jin10)

Odaily

2026-03-27 12:45:55

Odaily Planet Daily News: The Bank of Japan’s new estimate of the country’s natural interest rate indicates that the central bank still has considerable room to raise rates. The new data suggests that the neutral rate may be between 1.1% and 2.5%, while the bank’s current policy rate is 0.75%. In its Friday report, the bank said that many of the indicators used in the latest estimates show that interest rates will rise gradually. This implies that the upper limit of the neutral rate may be raised further, providing the Bank of Japan with more room for additional rate hikes. (Jinshi)

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