Capital Economics: The Bank of Japan's somewhat tightening bias signals further tightening in the future.

Kaiyuan Macro stated in a report that the decision of the Bank of Japan to raise interest rates is not surprising, but its slightly contractionary message suggests that further tightening is expected in the future. Economist Abhijit Surya stated that the Bank of Japan has shown more confidence in the ability of the Japanese economy to cope with tariff uncertainty and maintain high corporate profits. He predicts that the upcoming economic activity and inflation data are more likely to be stronger than the Bank of Japan's forecasts. Kaiyuan Macro stated that it is becoming more confident in its forecast that the terminal interest rate will reach 1.75% in 2027, which is higher than the market's general expectations.