Bank of Japan expected to raise interest rates to 1 percent by June as inflation risks mount
A majority of economists now expect the Bank of Japan to raise interest rates to 1 percent by June. The shift follows growing concerns over inflation and a weak yen.
A majority of economists surveyed in a Reuters poll now expect the Bank of Japan 
JP to raise its key policy rate to 1% by the end of June. This represents a material acceleration in the expected timing of further tightening, as the previous consensus had pointed toward a move by the end of September. The shift comes as market participants weigh the implications of recent political developments and the central bank's own signals regarding its monetary path.
JP to raise its key policy rate to 1% by the end of June. This represents a material acceleration in the expected timing of further tightening, as the previous consensus had pointed toward a move by the end of September. The shift comes as market participants weigh the implications of recent political developments and the central bank's own signals regarding its monetary path.This survey marks the first Reuters poll of forecasters conducted since Prime Minister Sanae Takaichi secured a landslide victory in the February 8 election. The political landscape, dominated by the Liberal Democratic Party, is now being analyzed alongside the Bank of Japan's recent actions. In December, the bank increased its key rate to 0.75%, a 30-year high, and signaled that it remains prepared to continue hiking rates in the near term.
