DBS Group Research says the Bank of Japan could accelerate its rate-hike cadence
from about one every six months to one every 3–4 months. DBS has moved its
expected next BOJ hike forward to September and forecasts two further hikes in
Q1 and Q2 2027, taking the overnight call rate to 1.75% by mid-2027. Analysts
note BOJ rhetoric has turned more hawkish and the government appears less
Opposed to earlier tightening. DBS raises Japan GDP forecasts to 0.9% for 2026
(from 0.5%) and 1.0% for 2027 (from 0.5%).