Central Banks

Most BOJ Watchers See July Rate Hike Risk With Bond-Buying Cut

  • A third expect a hike in July, but 90% see risk of a hike
  • Economists see BOJ cutting bond purchases by ¥1 trillion first

BOJ officials see weakness in consumer spending complicating their decision over whether to raise interest rates at the meeting.

Photographer: Soichiro Koriyama/Bloomberg
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While only about 30% of Bank of Japan watchers say authorities will hike interest rates when they gather next week, more than 90% see the risk of such a move, according to a Bloomberg survey.

Some 14 of 48 economists predict Governor Kazuo Ueda’s board will raise its policy rate from the current range of 0 to 0.1% at the July 31 conclusion of next week’s meeting, according to the poll.