JPMorgan Chase released a report on August 7, stating that the Japanese government's push for tax cuts and expanded fiscal support will increase pressure on the Bank of Japan (BOJ) to tighten monetary policy. The bank acknowledged a significant increase in the risk of a Bank of Japan (BOJ) rate hike in September but maintained its baseline forecast for a rate hike in October. At the same time, JPMorgan Chase raised its Bank of Japan (BOJ) rate hike forecast for 2027 from two to three, expecting the policy rate to reach 2% by the end of 2027. The report warned that domestic political pressure in Japan to slow down rate hikes could lead the Bank of Japan (BOJ) to continue lagging behind inflation, and future catch-up rate hikes might push the terminal rate above the currently predicted 2%.