BoJ Poll Points to Early Rate Hikes and Stronger Yen

A Reuters poll suggests that the Bank of Japan (BoJ) will raise interest rates to 1.25% this month, earlier than previously expected.

The majority of economists polled (82%) believe that joint US-Japan Yen-buying intervention and comments from Treasury Secretary Scott Bessent have lowered political barriers for rate hikes.

Of the 68 economists surveyed, all but two expect the BoJ to raise rates on September 18. Additionally, 24 out of 66 economists anticipate another hike to 1.50% in either October or December.

The poll also found that 89% of analysts believe the policy rate will reach at least 1.50% by the end of March next year, and around 62% see it reaching at least 1.75% by the end of Q2 2027, three months earlier than predicted in August's poll.