Revising our monetary policy forecast; we now see BoJ hiking in January 2026
Key points
- Financial and capital markets undergo heavy volatility amid mounting uncertainty created by Trump administration's "tariff shock"
- Although Japan's economy remains "on track," we think time will be required to determine implications of US tariffs
- We have therefore provisionally pushed back our forecast of BoJ's next rate hike (to 0.75%) to January 2026
