Citigroup strategist Tomohisa Fujiki says equity gains and firm inflation have strengthened market-implied Bank of Japan hike odds. The bar for consecutive hikes remains high, but the probability of quarterly increases has risen and position-driven volatility should persist short term. Citigroup forecasts the BOJ policy rate at 1.50% in December (market-implied 75% chance of a 25bp move), 1.75% in Q1 and 2.00% by Q3.

2026-11-13

Citigroup strategist Tomohisa Fujiki says equity gains and firm inflation have strengthened market-implied Bank of Japan hike odds. The bar for consecutive hikes remains high, but the probability of quarterly increases has risen and position-driven volatility should persist short term. Citigroup forecasts the BOJ policy rate at 1.50% in December (market-implied 75% chance of a 25bp move), 1.75% in Q1 and 2.00% by Q3.