State Street Analyst Predicts BOJ Rate Hike in September or October

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Interest rate news from July 31, 2026, shows Masahiko Loo of State Street expecting the BOJ to raise rates in September or October, ahead of market forecasts. The analyst sees a gradual path toward a terminal rate of 1.5% to 1.75%. BOJ Governor Haruhiko Kuroda warned of risks of inflation overshooting, adding that tighter monetary policy could accelerate if conditions remain too loose. On-chain data suggests market participants are closely monitoring for policy shifts.

Huo Xing Cai Jing reports that on July 31, Masahiko Loo of State Street Investment Management stated that the Bank of Japan may bring forward its next rate hike to September or October, rather than waiting for the six-month interval many anticipate. The strategist expects the Bank of Japan to gradually move toward a final interest rate range of 1.5% to 1.75%. At Friday’s press conference, Bank of Japan Governor Kazuo Ueda expressed high concern about the risk of inflation overshooting, stating that this risk cannot be ignored. Ueda said, “If we determine that financial conditions are overly accommodative, it is entirely possible to accelerate the pace of rate hikes.”

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