Bloomberg carry the piece with a view from former Bank of Japan executive Hideo Hayakawa.
Bloomberg is gated, but in brief:
- Hayakawa predicts the BoJ will raise interest rates beyond market expectations
- two more hikes possible in 2025
- sees the terminal rate around 1.5%, higher than most analysts but aligned with the IMF’s projection
- next increase could happen around July, with another possible by year-end
- rates likely won’t stop at 1%, as the BOJ’s neutral rate estimate ranges from 1% to 2.5%
- hikes depend on the yen’s performance, global monetary policy, and uncertainties from U.S. policies under Trump
The yen is gaining today:
