Makoto Sakurai: BOJ rates could hit 2% by June 2027
Japan's central bank could hike interest rates up to 2% by June 2027, said former Bank of Japan (BOJ) board member Makoto Sakurai.
This would happen through steady, quarterly increases as the country tries to handle rising inflation, driven by pricier fuel, a weaker yen, and booming demand for AI tech.
The BOJ already raised rates in September 2026 to its highest level in 31 years, marking a big shift from its longstanding low-rate policy.
Japan crude import costs up 70%-80%
Japan's economy is feeling the squeeze from higher import costs: Japan's crude oil import costs have risen by around 70% to 80% in recent months, and a weaker yen has also raised import costs.
At the same time, strong AI-related demand has boosted manufacturers' profits and supported the economy, but also pushing prices up.
Sakurai said the BOJ might update its inflation forecast soon and could even raise rates again by December if things do not cool off.