Factbox-Brokerages expect next BOJ rate hike in Dec, further tightening in 2027

Oct 16 (Reuters) - The Bank of Japan raised interest rates to a 31-year high in September and signalled that further tightening could follow as it shifts its focus to preventing inflation from overshooting its target.Several brokerages expect the BOJ's next interest rate hike to come in December. The policy rate currently stands at 1.25% and the central bank's next policy decision is due on October 30. Here are the policy forecasts from major brokerages:

Brokerage Policy forecast

J.P.Morgan 4 rate

hikes, in December 2026, April, July

and December 2027

HSBC 1 rate hike in Q1 2027

BofA 3 rate hikes, in December 2026, March and

Global July 2027

Research

Goldman 2 rate hikes in January and July 2027

Sachs

Morgan 2 rate hikes in December 2026

Stanley and March 2027

Citigroup 3 rate hikes, in December 2026, March and

July 2027

Nomura 2 rate hikes in December 2026 and March 2027

Standard 2 rate hikes in Q1 2027

Chartered

Deutsche 2 rate hikes, in January and April 2027

Bank

UBS Global 2 rate hikes, in January and June 2027

Wealth

Management

Macquarie 2 rate hikes, in December 2026 and Q2 2027

TD 4 rate hikes, roughly once every quarter, in

Securities December 2026, April, July and October 2027

** All rate increases referenced in the forecasts are 25 basis points (bps) each

(Reporting by Joel Jose in Bengaluru; Editing by Jochelle Mendonca)