According to Jinshi Data, Norihiro Yamaguchi, an economist at the Oxford Economics Institute, said that the Bank of Japan may raise interest rates from 0.25% to 0.5% as early as October.

Yamaguchi expects the Bank of Japan to become more cautious after the next rate hike and raise rates only once a year in 2025 and 2026, with the final target rate reaching 1% in 2026.

Bank of Japan Governor Kazuo Ueda is scheduled to testify before parliament on Friday.