Tokyo, 21 October 2026 – A survey of economists indicates that the Bank of Japan may raise its policy rate to 1.50% in December, from the current 1.25%, while maintaining a roughly quarterly pace of tightening. The central bank has not announced such a move, and its next scheduled monetary policy meeting is on 29 and 30 October.
For Asian businesses and investors, the distinction between a forecast and a decision is important. A higher Japanese rate could support the yen and lift domestic borrowing costs, while affecting regional capital flows and the pricing of Japanese government bonds. The survey signals changing expectations, but the eventual decision will depend on inflation, wages, economic activity and financial conditions.
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