Oxford Economics predicts that the Bank of Japan will only raise interest rates once before the middle of the year

The Oxford Economic Research Institute said that if the Bank of Japan did not act in time, it might lead to an increase in the term premium. The rise in the yield of Japanese treasury bond bonds would worsen the fiscal situation, weaken the yen and increase inflation expectations, further increasing the pressure on the steepening of the yield curve. The market expects the Bank of Japan to take action, but the outcome may not be as expected. It is expected that the Bank of Japan will keep interest rates unchanged at 0.75% this week and only raise them once before mid-2026, with a final interest rate level of 1%.