(Yicai) May 16 -- Oxford Economics expects the Bank of Japan to gradually raise interest rates to 1% over the next two to three years, but there is a risk that because of inflation the BOJ cannot complete the tightening and will end up at 0.5%, according to Shigeto Nagai, head of Japan economics at the UK-based forecaster. Nagai does not expect the Japanese yen to reach 120 to the dollar in the coming years.