No Data
Express News | Minutes from the Bank of Japan's policy meeting in December: several members believe that if the economic outlook is realized, the central bank should raise interest rates.
The former committee member of the Bank of Japan indicated that the central bank is aiming to raise interest rates to at least 1.5% in the next two years.
According to a report by Reuters, former Monetary Policy Committee member of the Bank of Japan, Makoto Sakurai, indicated that the bank may raise interest rates in June or July, seeking to increase rates to at least 1.5% over the next two years. He mentioned that broader wage increases, the prospect of continuous price rises, and steady economic growth in Japan provide the central bank with the space to consistently raise rates. He stated that with the Bank of Japan raising rates this month, it seems that the bank will seize any opportunity to raise rates and will not delay such actions; he also noted that if action were to be taken before the July Senate elections, which could introduce domestic political uncertainty, the central bank might advance its next interest rate hike to April. If the economy aligns with forecasts, the Bank of Japan will likely raise rates in June or July.
Survey: Analysts expect the Bank of Japan to raise interest rates next in the summer.
According to a Bloomberg survey, Analysts and economists expect that the Bank of Japan may not raise interest rates again until summer. 56% of respondents anticipate that the next rate hike will occur in July, 9% believe it will happen in June, while 18% foresee it in September. The survey indicates that the central bank may pause raising rates for a period of time, and then increase the rate to 0.75%, the highest level since 1995. Respondents noted that the weak yen could be a potential reason for an earlier rate hike, with about 45% considering that in a risk scenario, the earliest time for the next increase would be in April.
Economists predict that the Bank of Japan's next interest rate hike will be in July, with the weak yen potentially being the biggest variable.
Approximately 56% of the 45 Bank of Japan observers expect the next interest rate hike to take place in July, following the central bank's decision last Friday to raise rates to the highest level since 2008.
After the Bank of Japan rarely indicated an interest rate hike, the market may return to uncertainty.
To avoid being led by the market and given the uncertainty in the economic outlook, the Bank of Japan may restore ambiguous policy guidance.
Express News | What is the biggest challenge for the Bank of Japan this year after interest rates were raised to their highest level since 2008.