OECD flags Bank of Japan rate surge to 2 percent by 2027 after inflation shift

Japan may finally exit decades of near zero inflation

The OECD expects the Bank of Japan to lift interest rates to around 2% by late 2027, signaling a break from decades of low inflation. The forecast points to improving wages and consumer demand that can support gradual borrowing cost hikes, alongside a likely reduction in bond purchases. If realized, it marks a major shift in Japan’s monetary era.