BOJ Sees Rate Hikes Accelerating in Coming Months

The Bank of Japan (BOJ) is expected to raise its benchmark interest rate next week, marking the start of a policy normalization process. According to a Bloomberg survey of 52 BOJ watchers, all of them forecast a borrowing cost increase at the end of the two-day meeting on Sept. 18.

The survey showed that some 93% of respondents expect another move by January, with around one-third predicting it could come in December. The remaining participants picked January as the next rate hike date, while no one predicted back-to-back hikes in October.

This clear acceleration of policy normalization is a significant development for the Japanese economy and financial markets. As the BOJ's interest rates rise, it may lead to a strengthening of the yen and higher borrowing costs for consumers and businesses.