According to Jinshi Data, economists at HSBC Global Research pointed out that the Bank of Japan may raise interest rates at its December meeting. Economists Frederic Neumann and Jun Takazawa said that the hawkish remarks of officials reflected foreign exchange fluctuations and improved economic data.
Most members of the Bank of Japan's policy board are likely confident that wages will continue to grow next year and choose to raise interest rates in December. Japan's economy and prices remain on track, with wage, consumption and service inflation all making progress.
HSBC expects the Bank of Japan to raise interest rates by another 25 basis points in the first quarter of 2026, bringing the policy rate to 1%.