BoJ to raise rates again by December — Reuters poll

According to a majority of economists in a Reuters poll, the Bank of Japan (BoJ) will raise its interest rate again by the end of December and possibly as soon as October, keeping further rate rises in view through next year.

86% of economists expect the BoJ to raise its key interest rate to 1.25% by the end of the fourth quarter (Q4), up slightly from 79% in a June survey.

70% of economists anticipate the BoJ to hike rates to at least 1.50% in Q2 of 2027, while 51% of respondents see 1.50% as the terminal rate. 

58% of economists see the impact of Japanese Government Bonds (JGB) yield increase on Japan's debt-financing costs in the next 2-3 years 'very' or 'somewhat' concerning. 

79% of economists said the USD/JPY pair around the 160 level is too weak relative to Japan's economic fundamentals.