Barclays has pushed back the timing of the next interest rate hike by the Bank of Japan to January 2026.

On May 7, Jin10 reported that Barclays has postponed the timing of the Bank of Japan’s next interest rate hike from July 2025 to January 2026. Economists at Barclays’ FICC Research pointed out that the Bank of Japan adjusted its policy guidance in the quarterly outlook report and lowered its expectations, especially regarding economic growth. Taking into account the Bank of Japan’s new guidance and revised forecasts, Barclays also lowered its prediction for the final interest rate from 1.25% to 1.00%. However, Barclays still believes that there is a high likelihood of the Bank of Japan raising interest rates within 2025, depending on tariffs, forex, and inflation.