BOJ to Raise Rates Again by December as Weak Yen Revives Inflation Risks: Reuters Poll
Most economists expect another 25-basis-point hike by December as the weak yen and higher fuel costs add inflation pressure, the Reuters poll showed.
- A Reuters poll released Thursday shows a majority of economists expect the Bank of Japan to raise interest rates again by end-December, with some predicting a move as soon as October.
- The Bank of Japan lifted its policy rate to 1% in June, yet the yen weakened past 163 per dollar this week, marking its lowest level in roughly 40 years.
- Forecasts show 86 per cent of economists predict a 25-basis-point rate hike to 1.25 per cent by end-December, though 58 per cent said they were "very" or "somewhat" concerned about rising debt-servicing costs.
- Bloomberg News reported Wednesday that Bank of Japan officials are open to raising interest rates faster than market consensus, citing upside inflation risks from the yen's continued weakness.
- Beyond this year, 70 per cent of economists expect the policy rate to reach at least 1.50 per cent by end-Q2 2027 as the central bank keeps further rate rises in view.
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Yen, won flashing a currency risk markets haven't priced
The instinct among global investors watching this Middle East crisis is simple. Oil goes up, the Fed delays cuts, the dollar strengthens, and everyone adjusts their U.S. exposure accordingly. What’s being missed is a very different, and arguably more dangerous, dynamic playing out in Japan and Korea. Both central banks have already raised rates this […] The post Yen, won flashing a currency risk markets haven’t priced appeared first on Asia Time…
BOJ Is Said Open to Faster Rate Hike Pace as Yen Adds Risks
The Bank of Japan (BoJ) remains alert to the high inflation risks that could lead to faster interest rate increases than those expected by the markets, said three sources at the heart of the central bank's position. Exclusive material for subscribers. To have full access, access the link of the subject and register.
BOJ on alert to price risks that may lead to faster rate hikes, sources say
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- 56% of the sources are Center
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