BOJ Rate Hike Expected in September: Economists See 1.25% Target

A recent survey by Reuters found that most economists expect the Bank of Japan (BOJ) to raise its key interest rate from 1% to 1.25% in September.

The survey, conducted from August 17 to 24, showed that 57% of respondents forecast a rate hike in September, compared to only 5% in the previous July survey.

Of the 58 participants, ten expect the BOJ to raise the rate further to 1.5% by October or December 2026.

The expected rate hike is linked to concerns about inflation amid the US and Israel's war with Iran, as well as persistent pressure on the yen, according to Reuters.