BOJ's Interest Rate Hike: A Shift in Japan's Monetary Policy The Bank of Japan (BOJ) has maintained a policy rate near zero since 2016 to combat deflation and stimulate growth.
However, the Organisation for Economic Co operation and Development's (OECD) latest estimate suggests that this era is coming to an end, with the BOJ's policy rate expected to reach 2% by the end of 2027.
A New Normal for Japan's Interest Rates The OECD's prediction is based on its Economic Outlook, which notes that the BOJ's decision to maintain ultra low interest rates has contributed to a prolonged period of low inflation and stagnant growth.