Barclays economists anticipate the Bank of Japan (BOJ) will raise interest rates in June following Japan's stronger-than-expected GDP growth. The country's real GDP expanded at an annualized rate of 2.1% in the first quarter, surpassing forecasts and bolstering the case for a rate hike. Barclays has adjusted its fiscal year 2026 GDP growth projection from 0.7% to 0.9% and predicts additional rate increases in October 2026 and April 2027, aiming for a terminal rate of 1.5%.