BOJ Rate Hikes Accelerate, Deposit Strategies Shift

The Bank of Japan's (BOJ) expected rate hikes are accelerating, causing deposit strategies to shift in response.

Markets now anticipate an additional 0.25% hike by autumn 2026, with some forecasts predicting another increase as early as this winter.

Given the potential for further rate increases, selecting short-term bank time deposits of six months to one year may be more advantageous than opting for longer maturities, which could leave funds tied up at lower rates.