Bank of Japan raises its policy rate to 1.50% at the December 2026 meeting (December 17–18), confirmed by BoJ press release or Bloomberg by December 18
The OIS market (TONA, as of October 1, 2026) prices a BoJ December rate hike at 75.9% (implied post-December rate: 1.47%). Bloomberg economist surveys show ~93% of BoJ watchers expect another hike by January 2027 (September 2026 survey). MUFG Research explicitly forecast December 2026 as the date of the move to 1.50% (published September 29, 2026). Fundamentals support: BoJ Tankan Q3 2026 Large Manufacturers' DI = +24 (eight-year high); Japan CPI remains above the 2% target. The BoJ is on a gradual normalization path (0% in early 2024 → 1.25% in September 2026). October hike probability: only 15.2% per OIS — market expects a pause in October, followed by a December move.
76%