Bank of Japan watchers brought forward their forecast for when they expect the next interest rate hike, after clarity over trade increased with U.S. President Donald Trump announcing deals, including one with Japan.
Some 42% of 45 economists surveyed by Bloomberg anticipate the move in October, jumping from 32% in the previous survey. Analyst views were last canvassed before the announcement of Japan’s trade pact with the U.S. on July 22, and last week’s BOJ policy decision. Those predicting it in January slightly dropped to a third, while those expecting December doubled to 11%.
No one foresees action at the next meeting in September as their base case, but in a risk scenario, about a quarter said the hike could come as soon as next month. Some 60% said the next hike could come as early as October.
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