Goldman Sachs: The Bank of Japan may raise interest rates again in January next year

Goldman Sachs economist Akira Otani stated that the Bank of Japan is likely to raise interest rates again in January 2027, but there is high uncertainty regarding the timing of future rate hikes. "Due to the potential inflation rate being close to 2%, even a slight change, such as a further minor depreciation of the yen, could significantly increase the risk of inflation exceeding 2%," the economist pointed out. "Therefore, the probability distribution for the timing of the next rate hike is considered to lean more towards an earlier increase." Otani also added that the actual timing of the rate hike will be "significantly influenced by the progress of communication with the government."