Two Barclays economists said that the Bank of Japan is expected to raise interest rates in September rather than October, while at the same time they are anticipating rate hikes ahead of schedule. The economists said that the summary of opinions from the Bank of Japan's July 30-31 meeting released today “sounds more austerity than the remarks made by Ueda and the male governor, and gives the impression that policymakers are positive about deciding to raise interest rates at the September meeting.” Barclays currently expects the Bank of Japan to raise interest rates three times: in September 2026, January 2027, and July 2027, respectively, the terminal interest rate will be 1.75%. The previous forecast was to raise interest rates twice in October and April, with a terminal interest rate of 1.5%.

Two Barclays economists said that the Bank of Japan is expected to raise interest rates in September rather than October, while at the same time they are anticipating rate hikes ahead of schedule. The economists said that the summary of opinions from the Bank of Japan's July 30-31 meeting released today “sounds more austerity than the remarks made by Ueda and the male governor, and gives the impression that policymakers are positive about deciding to raise interest rates at the September meeting.” Barclays currently expects the Bank of Japan to raise interest rates three times: in September 2026, January 2027, and July 2027, respectively, the terminal interest rate will be 1.75%. The previous forecast was to raise interest rates twice in October and April, with a terminal interest rate of 1.5%.