Former BOJ Official Predicts Quarterly Rate Hikes, Targeting 2% by June 2027

Ex-BOJ member forecasts quarterly rate increases, aiming for 2% by mid-2027 to curb inflation.

September 25, 2026 One Min Read

POLICY WIRE — Tokyo, Japan — A former member of the Bank of Japan’s board has predicted that the central bank may increase interest rates every three months, with a target of reaching 2% by June next year to address rising inflationary pressures.

Sakurai, who previously served on the BOJ’s governing body, suggested that after the expected 1.5% rate hike at the end of this year, the central bank would likely move to 1.75% in the first quarter of 2027 and then to 2% by mid-2027. He noted that while the terminal rate is currently projected to be around 2%, it could rise further if inflation remains elevated near 3%.

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The former official also pointed out that the BOJ appears to be shifting its focus toward inflation risks, with potential rate increases in December and additional hikes by June 2027. He added that continued loose fiscal policies are expected to keep the yen weak despite these monetary tightening measures.

Reporting by Policy-Wire (PW)

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