BOJ Expected to Hike Rates to 1.25%, Reach 1.75% in Early 2027

A Reuters poll has revealed that the Bank of Japan is expected to raise interest rates to 1.25% this month and then to 1.75% in the second quarter of 2027, faster than previously thought.

The poll showed that over 80% of respondents believed that the joint U.S.-Japan yen-buying intervention and remarks by Treasury Secretary Scott Bessent on BOJ policy had significantly or somewhat lowered political hurdles for rate hikes.

According to the survey, almost all economists, or 97%, expected the BOJ to raise rates on September 18, up from 57% in a previous poll. More than one-third of respondents anticipated another hike to 1.50% in either October or December.