BNP Paribas Forecasts Bank of Japan Rate Hike to 1.75% by March

BNP Paribas economists stated in a report on September 11 that the Bank of Japan may raise interest rates to 1.25% next week, with further hikes in December and March 2025, reaching 1.75%. The bank cited concerns over inflation risks as companies may pass rising costs for energy, metals, and chips to consumers, supported by a tight labor market and strong aggregate demand.