HSBC: Bank of Japan may raise interest rates next week

Economists at HSBC Global Research noted that the Bank of Japan is likely to raise interest rates at its December meeting. The bank's economists Frederic Neumann and Jun Takazawa said officials' recent hawkish comments reflect both foreign exchange fluctuations and improved economic data. Most members of the Bank of Japan's policy committee are likely to be confident enough that wages will continue to grow broadly next year and will choose to raise rates in December, before January, when major events may occur after Trump takes office. Japan's economy and prices are still on track, with progress in wages, consumption and service inflation. HSBC expects the Bank of Japan to raise interest rates by another 25 basis points in the first quarter of 2026, bringing the policy rate to 1%. (Jinshi)