Central Banks
BOJ Watchers Keep Rate Hike Views Unchanged Despite Market Chaos
- Many still see another rate hike by the end of the year
- Majority note there’s risk of the central bank backtracking
The Bank of Japan (BOJ) headquarters in Tokyo.
Photographer: Soichiro Koriyama/BloombergThis article is for subscribers only.
Most Bank of Japan watchers have kept their views on the trajectory of interest rates intact despite the historic upheaval in markets during the past few days, although they note rising risks of policy backtracking.
Some 65% of 34 economists see the policy rate rising from the current 0.25% by the end of the year, according to a Bloomberg survey conducted Tuesday. About 21% said the hike would likely occur in October, while 41% pegged December for the move. Those bets are largely in line with the consensus from a survey conducted on Aug. 1, the day after the BOJ raised its policy interest rate, and a day before the market turmoil began in earnest.