Makoto Sakurai said he expects the BOJ to raise rates twice during the year ending in March 2026, bringing the policy rate to 1%.

The Bank of Japan (BoJ) is the central bank of Japan. Established under the Bank of Japan Act in 1882, it is a juridical entity and neither a government agency nor a private corporation.

Investors will be keeping an eye on the Japanese yen, which rose to a more than two-month high of 150.52 per U.S. dollar on Thursday.

Reuters forecasts a rise in Japan’s total trade balance for January to 2,100.5 billion yen ($138.1 million), from 130.9 billion yen the month before.