State Street Sees BOJ Rate Hike in September or October

State Street Global Advisors has forecasted that the Bank of Japan (BOJ) may raise its benchmark interest rate in September or October, earlier than market expectations.

Masahiko Loo, a strategist at State Street, expects the BOJ's terminal policy rate to gradually rise to 1.5% to 1.75%

This prediction comes after BOJ Governor Kazuo Ueda expressed concern that inflation could exceed the central bank's target and stated that the BOJ may accelerate the pace of rate hikes if it judges financial conditions to be excessively accommodative.