Key facts
- J.P. Morgan forecasts four rate hikes in December 2026, April, July, and December 2027.
- HSBC expects one rate hike in Q1 2027.
- BofA Global Research predicts three rate hikes in December 2026, March, and July 2027.
- Goldman Sachs anticipates two rate hikes in January and July 2027.
- Morgan Stanley expects two rate hikes in December 2026 and March 2027.
- Citigroup forecasts three rate hikes in December 2026, March, and July 2027.
- Nomura expects two rate hikes in December 2026 and March 2027.
- Standard Chartered predicts two rate hikes in Q1 2027.
- Deutsche Bank forecasts two rate hikes in January and April 2027.
- UBS Global Wealth Management expects two rate hikes in January and June 2027.
- Macquarie forecasts two rate hikes in December 2026 and Q2 2027.
- TD Securities expects four rate hikes, roughly once every quarter, in December 2026, April, July, and October 2027.
- All referenced rate increases are 25 basis points each.
The Bank of Japan raised interest rates to a 31-year high in September and signalled that further tightening could follow as it shifts its focus to preventing inflation from overshooting its target. Several brokerages expect the BOJ's next interest rate hike to come in December. The policy rate currently stands at 1.25% and the central bank's next policy decision is due on October 30. Forecasts from major brokerages vary on the timing and number of future rate increases, with all referenced increases being 25 basis points each.