Barclays sees Bank of Japan June hike on Middle East stability in World Economy News 05/05/2026 Barclays maintains its forecast for the Bank of Japan to raise interest rates in June, contingent on easing tensions in the Middle East, according to a note released Monday. The investment bank views the central bank’s latest decision as groundwork for early rate hikes. Barclays expects the BoJ to become more conscious of upside inflation risks if Middle East tensions stabilize and uncertainty over economic activity diminishes. The firm notes that Japanese companies have grown more accustomed to passing higher costs through to prices in recent years. The BoJ appears increasingly concerned that the mechanism through which higher oil prices feed into inflation has strengthened compared to the past. Following a June hike, Barclays expects the BoJ to accept shorter intervals between rate increases, with additional moves projected for October and April 2027. The firm’s terminal rate forecast remains 1.5%. Barclays says measures to combat inflation, including yen weakness, are an urgent priority for Prime Minister Takaichi, noting that U.S. Treasury Secretary Bessent has indicated support for rate hikes. The bank identifies the Summary of Opinions from the April meeting on May 12, speeches by Policy Board Member Masu on May 14, and Deputy Governor Himino on May 16 as upcoming focal points. Source: Investing.com 2026-05-05 hellenicshippingnews... tweet Share