OECD Estimates Japan's Central Bank Rate Could Reach 2% by End of 2027

According to the OECD's latest report, Japan's central bank benchmark rate is projected to reach 2% by the end of 2027. The report assumes inflation remains around 2%, noting that current rates remain near the lower bound of the neutral rate range for the economy. The Bank of Japan previously estimated its nominal neutral rate at between 1.1% and 2.5%, though it acknowledged significant uncertainty around the specific level.
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