Reuters poll shows 57% of economists expect the Bank of Japan to raise rates next month, accelerating policy normalization timelines.
A Reuters poll conducted August 17-24 reveals 57% of economists anticipate the Bank of Japan will lift its benchmark rate to 1.25% in September. This marks a significant shift from July’s survey, reflecting growing expectations for tighter monetary policy.
Nearly two-thirds of analysts now project the rate will reach at least 1.5% by end-March 2025, three months sooner than previously forecast. Around 60% see rates hitting 1.75% or higher by Q3 2027, with half of respondents identifying 1.75% as the likely terminal rate, up from 19% in July.
The USD/JPY pair edged lower by 0.17% to 158.92 following the poll’s release, signaling market sensitivity to BoJ policy shifts.