Bank of America: Expects the Bank of Japan to raise interest rates in September and December 2026, as well as in March and July 2027.

According to the latest forecast from Bank of America Global Research, the Bank of Japan is expected to accelerate its interest rate hikes to approximately once per quarter, with anticipated increases in September 2026, December 2026, March 2027, and July 2027, ultimately raising the policy rate to 2%. Bank of America strategist Yamada Shuukei pointed out that the coordinated foreign exchange intervention between the U.S. and Japan has increased the leverage to defend the yen, while the ongoing defense of the yen must rely on adjustments to monetary policy to be effective.