0613 GMT - Standard Chartered expects the Bank of Japan to raise interest rates by 25 basis points in September, rather than its earlier projection of October, say analyst Chong Hoon Park and strategist Nicholas Chia in a note. They also expect further hikes in the first and third quarters of 2027. They previously forecast a rate hike only in the second quarter. "Our revised expectation implies an additional 25bps hike this cycle, to a terminal rate of 1.75% (1.5% prior)," they say. Persistent yen weakness has also amplified imported inflation pressure, reducing the BOJ's ability to stay patient even as consumer spending remains soft, they say.
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