Economists Anticipate Interest Rate Increase by the Bank of Japan
AI Summary
According to BlockBeats, a recent survey conducted by Reuters between December 2 and 9 reveals that most economists expect the Bank of Japan to raise interest rates by 25 basis points to 0.75% during its December meeting. This move is anticipated to be the first rate increase since January, driven by inflation risks and yen depreciation.
The government of Japanese Prime Minister Sanae Takaichi is expected to tolerate this decision, considering the economic factors at play. The survey indicates that 90% of economists, or 63 of the 70 respondents, foresee the central bank raising short-term rates from 0.50% to 0.75% next week. This marks a significant increase compared to last month's survey, where only 53% anticipated such an increase.
Additionally, just over two-thirds of participants, 37 out of 54, believe that by the end of September next year, interest rates will reach at least 1.00%. This expectation reflects growing concerns about inflation and currency depreciation.$YGG
