Barclays delays the expected timing of the Bank of Japan's next interest rate hike to January 2026.

Barclays has postponed the Bank of Japan's next interest rate hike from July 2025 to January 2026. Economists at Barclays' FICC Research pointed out that the Bank of Japan adjusted its policy guidance and reduced its expectations in the quarterly outlook report, especially for economic growth. Taking into account the Bank of Japan's new guidance and forecast revisions, Barclays has also lowered its forecast for the final interest rate from 1.25% to 1.00%. However, Barclays still believes that there is a high possibility of the Bank of Japan raising interest rates in 2025, depending on tariffs, exchange rates, and inflation.