INVESCO Asset Management (Japan) strategist Tomo Kinoshita said in a report that after last Friday’s policy rate increase to 1.25%, the Bank of Japan could lift the policy rate to 1.50% in December. He cited limited deterioration in corporate financi

2026-09-21

INVESCO Asset Management (Japan) strategist Tomo Kinoshita said in a report that after last Friday’s policy rate increase to 1.25%, the Bank of Japan could lift the policy rate to 1.50% in December. He cited limited deterioration in corporate financing per the BOJ’s quarterly survey, rising upside inflation risks from higher energy prices and a weaker yen, and increased yen depreciation risk from the Fed’s hawkish shift. Kinoshita expects further hikes in March and July next year to take the policy rate to 2.0%, ending the current tightening cycle.