BOJ Seen Raising Rates to 1.50% in December as 51% Expect 2.0% or Higher
Updated
Updated · Reuters · Oct 20
BOJ Seen Raising Rates to 1.50% in December as 51% Expect 2.0% or Higher
3 articles · Updated · Reuters · Oct 20
Summary
54 of 78 economists in a Reuters poll expect the Bank of Japan to lift its policy rate to 1.50% in December, following June and September increases and keeping a quarterly tightening pace.
Rising energy and import costs, a still-weak yen and Middle East war fallout are seen sustaining inflation pressure, while a steadier yen has strengthened the case for a year-end move.
Only 2 respondents picked the BOJ's Oct. 30 meeting for the next hike, with analysts saying officials want more time to gauge the impact of earlier increases even as Fed and ECB hikes are expected in December.
39 of 65 analysts see rates at 1.75% by end-June, and the share expecting 2.0% or more rose to 51% from 40% in September.
Policy resistance remains a risk for the yen: dissent from board members aligned with Prime Minister Sanae Takaichi's looser fiscal stance briefly weakened the currency after September's hike.