Central Banks
Most BOJ Watchers Rethink Pace of Hikes After Ueda’s Hawkishness
- Nearly 70% of polled economists see another increase this year
- Views shift after BOJ chief says he will keep raising rates
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Most Bank of Japan watchers are reassessing the trajectory of interest rates and bringing forward their forecasts after Governor Kazuo Ueda’s hawkish messaging Wednesday and his earlier-than-expected rate hike.
Some 68% of 41 economists see the policy rate rising to 0.5% from 0.25% by the end of this year, according to a Bloomberg survey conducted Thursday. Just under a quarter predicts the hike to come in October, while 44% opt for December. Another fifth expects the move to take place in January.