Capital Economics: Bank of Japan's final interest rate is expected to reach 1.75% by 2027

According to Odaily, Capital Economics stated in a report that the Bank of Japan's decision to raise interest rates was not surprising, although its hawkish message indicates that further policy tightening is likely in the future. The Bank of Japan expressed greater confidence in the Japanese economy's ability to withstand tariff uncertainties and in the expectation that corporate profits will remain at high levels. It is expected that, compared to the Bank of Japan's forecasts, the upcoming economic activity and inflation data are more likely to exceed expectations. Capital Economics noted that its confidence is increasing, and it expects the terminal rate in 2027 to reach 1.75%, higher than the general market expectation. (Golden Ten Data)