WASHINGTON (Reuters) – The Bank of Japan is expected to hike interest rates twice in 2025 and twice more in 2026, International Monetary Fund chief economist Pierre-Olivier Gourinchas said on Friday.
In its latest World Economic Outlook, the IMF forecast that Japan’s economy would grow by 1.1% in 2025, moderating slightly to growth of 0.8% in 2026, leaving its October forecast unchanged.
“We’re … expecting that there will be something like two more rate hikes by the Bank of Japan in 2025 and two additional rate hikes in 2026,” Gourinchas said, adding that the gradual pace of tightening was warranted and would ensure that the economy was able to meet its inflation target.
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