Economist: The Bank of Japan is not done with rate hikes, but the next rate hike seems to be coming later
According to ChainCatcher news, Alvin Liew, an economist at United Overseas Bank, stated that the Bank of Japan has not yet completed its rate hike cycle, but the timing of the next rate hike is now expected to be influenced by next year's wage growth and the clarity of Trump's policies. This means that the possibility of a rate hike in January is not completely ruled out, but it is currently a low-probability event. Although the policy statement and Governor Haruhiko Kuroda's press conference did not provide forward guidance, Kuroda emphasized that Japan's wage growth in 2025 and the consideration of Trump's policies are key to the next decision. United Overseas Bank expects the Bank of Japan to raise rates by 25 basis points to 0.5% in March, which the bank believes will be the terminal rate. However, the risk of the rate hike being delayed to April or later is significant.
