Barclays economists predict Bank of Japan to raise interest rates in June

According to economists from Barclays Fixed Income, Foreign Exchange, and Commodities Research, Japan's real GDP grew at an annual rate of 2.1% in the first quarter, exceeding expectations and potentially supporting the Bank of Japan's interest rate hike in June. They have raised their GDP growth forecast for the 2026 fiscal year from 0.7% to 0.9%, and expect further interest rate hikes in October 2026 and April 2027, with a terminal interest rate of 1.5%.