Half of surveyed economists still expect the Bank of Japan?to wait until December to bump its benchmark interest rate higher, with Prime Minister Sanae Takaichi¡¯s government seen as a key obstacle to further action, according to a Bloomberg survey.
Some 50% of 52 economists selected December as the most likely timing for the next move after the BOJ raised the rate last month, according to the poll. Another 40% said it would come in October.
Takaichi is known to support monetary easing, and her government¡¯s influence will be a deterrence for the board to proceed along the path toward policy normalization, according to 59% of the respondents. An overwhelming majority?¡ª 82% ¡ª forecast the pace of rate hikes to be roughly once every six months, an increase from 71% in a June survey.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.