BOJ Set to Hike Interest Rates Again in September Amid Fears of Inflation

The Bank of Japan (BOJ) is expected to raise interest rates again in September, according to a majority of economists polled by Reuters. The poll results indicate that the BOJ's growing wariness about inflation stemming from the US-Israeli war with Iran and persistent selling pressure on the yen have led to this decision.

The survey showed that 57% of economists expected the BOJ to raise interest rates next month, a sharp turnaround from a July poll where only 5% expected a move this quarter. A minority of respondents, 10 out of 58, predicted another hike to 1.5% in October or December.

Ayako Fujita, chief Japan economist at JPMorgan Securities, stated that an early policy adjustment has become unavoidable since the market has already priced in a September rate hike. The central bank raised rates to a three-decade high of 1% in June.