Barclays: Expects Bank of Japan to Raise Interest Rates in July and December Next Year

According to Deep Tide TechFlow, on December 26, as reported by Golden Ten Data, two members of Barclays FICC Research stated in a research report that the Bank of Japan may raise interest rates in July and December 2026. These members indicated that this outlook is based on Japan's "spring wage negotiation cycle." They noted that the Bank of Japan's recent rate hike once again demonstrates that the wage increases decided during the annual spring negotiations are not only the starting point of the Bank of Japan's "wage-price cycle" narrative, but also the most powerful bargaining chip in negotiations with the Japanese government regarding rate hikes. The members added that the Bank of Japan must also pay due attention to the risk of another depreciation of the yen, just as it has done so far.