An overwhelming majority of Bank of Japan watchers anticipate the central bank will raise interest rates again by the end of this year, following a hike to the highest level since 1995 earlier this week, according to a Bloomberg survey.
Some 90% of 44 economists forecast the BOJ will raise its benchmark rate from 1% by the December meeting, according to the poll conducted Wednesday. That month is the most popular timing as picked by 52% of the respondents, while 36% say it¡¯ll come in October. In response to a separate question about the earliest possible timing of the next hike, nearly a quarter pointed to September.
The BOJ increased borrowing costs Tuesday for the first time since December as it noted a risk of underlying inflation overshooting its 2% goal. A key question is whether or not the bank needs to act a little faster than its widely seen pace of moving once every six months.
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