Barclays Forecasts More Fed Hikes, Higher Oil Risks and BOJ Tightening
Federal Reserve: Barclays now expects 25-basis-point rate hikes in December 2026 and January 2027, revising its earlier forecast of a single December hike.
Oil prices: Barclays says near-term risks remain skewed to the upside, with higher oil freight rates potentially persisting for several weeks.
Brent crude forecasts: Barclays maintains its price projections at $100 per barrel for 2026 and $85 per barrel for 2027.
Bank of Japan: Barclays says Japan’s neutral interest rate could exceed 2%, citing BOJ board member Koeda’s remarks that the neutral rate may be well above 1%.
BOJ rate outlook: Barclays expects a 25-basis-point hike in December 2026, followed by further increases in March and July 2027, taking the policy rate to 2% by July 2027.
Federal Reserve: Barclays now expects 25-basis-point rate hikes in December 2026 and January 2027, revising its earlier forecast of a single December hike.
Oil prices: Barclays says near-term risks remain skewed to the upside, with higher oil freight rates potentially persisting for several weeks.
Brent crude forecasts: Barclays maintains its price projections at $100 per barrel for 2026 and $85 per barrel for 2027.
Bank of Japan: Barclays says Japan’s neutral interest rate could exceed 2%, citing BOJ board member Koeda’s remarks that the neutral rate may be well above 1%.
BOJ rate outlook: Barclays expects a 25-basis-point hike in December 2026, followed by further increases in March and July 2027, taking the policy rate to 2% by July 2027.