BoJ Expected to Raise Rate to 1.0% in June, Poll Shows
A Reuters poll indicates roughly two-thirds of economists anticipate the Bank of Japan will hike its policy rate to 1.50% by Q2 next year, an earlier-than-previously-expected timeline.
According to a Reuters poll published Wednesday, a majority of economists now expect the Bank of Japan to raise its policy rate to 1.0% at the June meeting. The survey also revealed that roughly two-thirds of respondents project the rate to reach 1.50% by the second quarter of next year.
This marks a forward shift in expectations: the 1.50% target was previously forecast for Q3 of next year. The poll underscores growing conviction that the BoJ will continue its tightening cycle amid persistent inflation and a strengthening economy.
The findings could support the yen in the near term as markets price in a more hawkish BoJ stance.
Source: FXStreet Forex News