A Reuters poll shows 94% of economists expect the Bank of Japan to raise rates to 1.0% next month, accelerating prior projections.
Nearly all economists surveyed in a Reuters poll anticipate the Bank of Japan will lift its policy rate to 1.0% at its June meeting, up from roughly 65% in prior forecasts. The shift reflects growing expectations for tighter monetary policy amid persistent inflation and economic recovery signals.
Previously, economists projected the 1.0% target for the third quarter of 2025, but expectations have now moved forward to the second quarter. Additionally, 99% of respondents foresee the rate reaching at least 1.0% by the end of September, while 79% predict a further increase to 1.25% in Q4 2026.
The USD/JPY pair showed minimal movement, trading up 0.01% at 160.35 at the time of reporting.