Market Chatter: BOJ Seen Hiking in December as Economists Bet on Quarterly Pace

07:46 PM EDT, 10/21/2026 (MT Newswires) -- More than 80% of Bank of Japan watchers expect the central bank's next interest rate increase in December, Bloomberg reported Wednesday, citing a survey of economists. Some 83% of respondents forecast a hike from the current 1.25% at the meeting ending Dec. 18, up from 35% in last month's survey, the report said, adding that none expect a hike at the Oct. 30 meeting. About 67% of economists expect the BOJ to raise rates every three months, up from 46% previously, the report said. The median forecast for the terminal rate remained at 1.75%. Many respondents said the focus of the October meeting will be the BOJ's assessment of whether underlying inflation has reached its 2% target, according to the report. Takeshi Yamaguchi, chief economist at Morgan Stanley MUFG Securities, said the BOJ is likely to indicate underlying inflation has reached around 2%, and expects a "hawkish hold" this month, Bloomberg reported. About two-thirds of respondents said Prime Minister Sanae Takaichi's government has softened its stance on BOJ rate hikes, the survey showed. (Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)