world-economy

BOJ Rate Seen Climbing to 2% by Late 2027 as Global Central Banks Navigate Inflation Pressures

Japan's central bank is expected to raise its policy rate to 2% by the end of 2027, according to OECD projections released this week. The forecast reflects continued monetary tightening across major economies as policymakers grapple with imported inflation risks. China's central bank has flagged concerns over rising oil prices stemming from regional tensions, signaling caution on policy easing while prioritizing transmission mechanisms to the broader economy. The European Central Bank appears positioned to raise rates in coming months, with officials weighing inflation threats against economic conditions. Policy transmission remains a key focus for central banks worldwide as they calibrate rate moves. The BOJ's projected trajectory marks a significant shift from the prolonged period of ultra-loose monetary policy in recent years.