Yen Depreciation Fuels BoJ Rate-Hike Outlook, Bank of America’s Takayasu Kudo Sees Increases Through 2027

From a macro and crypto-market perspective, Bank of America economist Takayasu Kudo highlights a hawkish tilt in the Bank of Japan policy stance after the December move to 0.75%, signaling a trajectory of incremental rate hikes supported by earnings, wages, and ongoing policy dialogue.

Kudo forecasts the path includes additional tightening, with a potential rate lift in June 2026 and further moves in January 2027 and July 2027, reflecting improving inflation momentum and the central bank’s evolving confidence in policy tools.

For crypto markets, this gradual policy normalization may affect yen volatility, cross-border funding costs, and trading flows on digital-asset venues. Traders should monitor BoJ communications and macro data to gauge shifts in risk sentiment and liquidity.