OECD Sees BOJ Rate Reaching 2% by End-2027 as Inflation Holds Near 2%

2 articles · Updated · Bloomberg · May 13

2% is where the BOJ’s policy rate is likely to land by the end of 2027, the OECD said in its latest economic survey.
Inflation near 2% underpins that view, with the OECD judging Japan’s current policy rate still close to the low end of a neutral range.
Gradual rate increases are still warranted, the OECD said, arguing the BOJ should keep tightening to stop the economy from overheating.
The estimate points to a longer normalization path for Japan’s monetary policy after years of ultra-low interest rates.

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