Reuters Survey: Expect the Bank of Japan to raise interest rates by 25 basis points in December, with rates rising to 1% by September next year

Odaily Planet Daily reported that a Reuters survey conducted from December 2 to 9 shows that the vast majority of economists expect the Bank of Japan to raise interest rates by 25 basis points to 0.75% at the December meeting, and to raise borrowing costs to at least 1% by the end of September next year. Earlier sources indicated that the Bank of Japan is expected to implement its first rate hike since January at the December meeting. Considering inflation risks and the yen’s weakness, the government led by Prime Minister Fumio Kishida is expected to tolerate this decision. 90% of economists (63 out of 70) anticipate that the Bank of Japan will raise short-term interest rates from 0.50% to 0.75% at next week’s meeting, a significant increase from 53% in last month’s survey. Slightly more than two-thirds of respondents (37 out of 54) said that by the end of September next year, interest rates will be at least 1.00%. (Jin10)