Bank of America adjusts its forecast for the Bank of Japan's interest rate hike from March to this week

Golden Finance reports that Bank of America has revised its forecast for the Bank of Japan's interest rate hike, moving it from March to January (this week). The bank currently predicts that at this Friday's policy meeting, the Bank of Japan will raise interest rates by 25 basis points to 0.50%. A March rate hike had previously been BofA's preferred prediction because it gave the Bank of Japan more time to assess the policies of the new U.S. government.

However, strong price data and a possible need for the Bank of Japan committee to revise its inflation forecast prompted BofA to adjust its rate hike prediction to January. BofA added that hawkish comments made recently by senior officials including Governor Haruhiko Kuroda and Deputy Governor Masayoshi Amamiya also contributed significantly to this change.