Analysts expect the Bank of Japan to raise interest rates to 1.0% next month and project further tightening by year-end.
A Reuters poll indicates the Bank of Japan is likely to raise its benchmark interest rate to 1.0% in June, marking its second hike this year. The move follows the central bank’s exit from negative rates in March, reflecting persistent inflation pressures and a shift in monetary policy stance.
Median forecasts from the poll suggest the BOJ will lift rates to 1.25% in the fourth quarter, with a longer-term projection of 1.5% by Q3 2027. These expectations remain unchanged from April’s survey, signaling steady confidence in gradual tightening.
The poll underscores growing consensus that Japan’s ultra-loose monetary policy era is ending, though the pace of hikes remains cautious compared to other major central banks.