BOJ expected to raise rates to 1.25 percent by year end
A Reuters poll of economists indicates the Bank of Japan will likely raise its key interest rate to 1.0% this month and reach 1.25% by the end of 2026. Analysts suggest the central bank is shifting focus toward inflation risks and currency stability as the yen remains near critical levels.
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The Bank of Japan will raise its key interest rate to 1.0% in June and 1.25% by year-end, according to a Reuters poll of 70 economists. The survey shows 94% of respondents now expect the June hike, up from 65% in May, as the Bank of Japan grows more wary of inflation risks. This shift follows signals that any delay in policy tightening could put further downward pressure on the Japanese currency.
