Updated
Updated · Bloomberg · Jun 18
BOJ Seen Raising Rates Again by December as 90% of 44 Economists Forecast Hike
Updated
Updated · Bloomberg · Jun 18

BOJ Seen Raising Rates Again by December as 90% of 44 Economists Forecast Hike

3 articles · Updated · Bloomberg · Jun 18

Summary

  • 90% of 44 economists surveyed by Bloomberg expect the Bank of Japan to lift its benchmark rate from 1% by the December meeting.
  • December is the most favored timing for the next move, chosen by 52% of respondents, while 36% expect an October hike.
  • Nearly a quarter said September is the earliest possible window for another increase, showing expectations have shifted toward a relatively quick follow-up move.
  • The survey came just after the BOJ raised rates to 1% earlier this week, the highest level since 1995, reinforcing views that tightening is not over.

Insights

Will the Bank of Japan's next rate hike finally reverse the yen's historic slide and upend global markets?
As Japan hikes interest rates, can its expansionary 'Sanaenomics' policy avoid triggering an economic collision?

BOJ’s 2026 Rate Hike to 1%: Drivers, Risks, and the End of Japan’s Cheap Money Era

Overview

In June 2026, the Bank of Japan (BOJ) made a historic interest rate hike, ending three decades of ultra-loose monetary policy and cheap money. This move marked a major turning point for both Japan’s economy and the global financial system, as one of the world’s largest sources of inexpensive capital began to recede. The BOJ’s decision was driven by persistent and rising inflationary pressures, along with a more hawkish outlook and increased vigilance against inflation risks. As a result, Japan and global markets now face a new era where capital is more expensive and financial conditions are fundamentally changing.

...