According to Odaily, Okasan Securities economist Ko Nakayama stated in a research report that the Bank of Japan might increase interest rates from 0.25% to 0.5% in December due to improved inflation-adjusted wage levels. Nakayama suggests that if the Bank of Japan gains more confidence in the positive cycle of prices and wages, it could raise policy rates by 25 basis points every six months while monitoring market impacts.

Nakayama anticipates that the Bank of Japan will raise the interest rate target to 0.75% by June 2025 and further to 1% by December 2025. He added that Japan's current terminal rate might be around 1%.