Nomura Securities: The Bank of Japan may face "considerable obstacles" in raising interest rates

ChainCatcher news, according to Jinshi reports, four members of Nomura Securities' Global Market Research Department stated that the Bank of Japan may face "considerable obstacles" to raising interest rates this year. They mentioned that these issues include the impact of U.S. tariffs on the domestic economy and prices, the Japanese government's economic stimulus measures, and the drafting of Japan's fiscal budget for 2026. Due to U.S. tariffs, wage increases from March to April 2026 may be lower than expected. This means that the growth of potential inflation may temporarily slow down from that point onward.

However, the worst effects of the tariffs may end in January 2026, and Nomura expects the Bank of Japan to raise interest rates in January 2026 and maintain the rates unchanged throughout the fiscal year 2026.