Will Bank of Japan Raise Rates in December?

DBS Bank analyst Ma Tieying suggests that the Bank of Japan might raise its policy rate by 25 basis points in December, based on market trends and economic data. She anticipates Japanese labor unions setting wage negotiation targets for 2026 between November and December. The Japanese Trade Union Confederation has already stated a target of 5% wage growth for 2026, aligning with this year’s target. If the Federal Reserve hesitates to cut rates at its December meeting, the possibility of a Bank of Japan rate hike in December could rise, potentially offering an opportunity for action.