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 (fro

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%).