Surveyed economists unanimously expect the Bank of Japan to retain its negative interest rate next week after the minority who previously predicted a January move pushed back their forecasts in the wake of the New Year’s Day earthquake, a Bloomberg poll shows.
None of 51 surveyed economists expects authorities to raise the rate at a two-day gathering concluding on Jan. 23, a shift from December’s poll in which 15% predicted a move this month. Two-thirds forecast a rate hike by April, with 59% seeing the adjustment coming that month, and July became the second most popular pick at 10%, the survey showed.
For this month, only one economist believes there’s even a risk of a move, with many saying authorities can’t ponder a policy shift while they continue to assess the damage from the 7.6 magnitude tremor that struck the Noto Peninsula in Ishikawa Prefecture.