T. Rowe Price: The Bank of Japan may raise interest rates more aggressively than the market expects

According to TechFlow, on December 18, as reported by Golden Ten Data, Vincent Chung, multi-portfolio manager at T. Rowe Price, stated that the Bank of Japan may raise interest rates more aggressively than the market expects. Japan's economic performance is slightly better than generally anticipated, although some slowdown is evident. Importantly, inflation remains persistent, and we continue to see upward pressure on wages. Recently, the market shifted its expectation for the Bank of Japan's next rate hike from January to this month. Current market pricing suggests that only one rate hike is expected in 2026. T. Rowe Price believes there may be two rate hikes next year.