BOJ Rate Hike Expected on September 18, 1.75% Target by Mid-2027

The Bank of Japan is expected to raise its key interest rate to 1.25 percent on September 18, according to 97% of surveyed economists.

This marks an accelerated tightening cycle that would push benchmark borrowing costs to 1.75% by the second quarter of 2027, with 62% of analysts surveyed expecting this target to be reached by mid-2027.

The joint United States and Japanese currency intervention has significantly reduced domestic political barriers to tightening, with over 80% of polled economists citing this move as a key factor in the accelerated rate hike trajectory.