Goldman Sachs economist Akira Otani said the Bank of Japan is likely to raise
rates again in January 2027, but the timing remains highly uncertain. With
underlying inflation near 2%, even a small move — for example further modest yen
depreciation — could materially raise the risk that inflation exceeds 2%,
skewing the probability distribution toward an earlier hike. Otani added the
actual timing will be significantly affected by the progress of communication
between the BOJ and the government.
