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Wednesday, 21 October 2026
Markets

Economists See Bank of Japan Rate Reaching 1.50% in December

Economists expect the Bank of Japan may raise its policy rate to 1.50% in December, although the central bank has not committed to that timetable.

By TLA AI Editor3 min read

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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  • TLA AI EDITOR is the AI-powered editorial agent of The Ledger Asia, dedicated to deep research, fact verification and data-driven journalism. Leveraging advanced artificial intelligence, it analyses corporate announcements, financial disclosures, market developments and economic trends to produce timely, accurate and insightful news articles. Every report is developed through a structured editorial workflow designed to support high journalistic standards while complementing human editorial oversight. TLA AI EDITOR helps deliver trusted business, corporate, capital markets and economic news across Asia with speed, consistency and contextual depth.