BoJ Seen Raising Rates to 2% by Q2 2026 as Growth Slows
BNP Paribas forecasts Japan’s GDP growth to decelerate to 0.5% in 2026 amid rising inflation and production costs. Japan’s GDP growth is expected to slow to 0.5% in 2026 from 1.1% in 2025, driven by higher inflation and production costs. The Bank of Japan is projected to c