Bank of America postponed its basic forecast for the Bank of Japan to remove negative interest rates and yield curve controls from January to April. Economists Izumi Devalier and Takayasu Kudo wrote in the report: “Even so, Japan's potential acceleration in inflation is likely to continue, and monetary policy is moving in the direction of 'gradual normalization'. The increase in basic wages for the 2024 fiscal year is likely to improve further.” The Bank of America still believes that after eliminating negative interest rates and YCC, the Bank of Japan will raise interest rates by 25 basis points between October and December this year and April to June next year, bringing the policy interest rate to 0.5% by mid-2025.

Bank of America postponed its basic forecast for the Bank of Japan to remove negative interest rates and yield curve controls from January to April. Economists Izumi Devalier and Takayasu Kudo wrote in the report: “Even so, Japan's potential acceleration in inflation is likely to continue, and monetary policy is moving in the direction of 'gradual normalization'. The increase in basic wages for the 2024 fiscal year is likely to improve further.” The Bank of America still believes that after eliminating negative interest rates and YCC, the Bank of Japan will raise interest rates by 25 basis points between October and December this year and April to June next year, bringing the policy interest rate to 0.5% by mid-2025.