Reuters on Wednesday published the results of a survey of some economists on when the Bank of Japan might raise interest rates again, with most economists suggesting that Bank Japan will raise interest rates again by the end of this year, according to a Reuters survey.
The results of the Reuters survey of economists on Japan Bank’s interest rates were:
- Thirty-one of the 54 economists (representing about 57%) of the experts surveyed said that Bank Japan is likely to raise interest rates again by the end of the year.
- Fourteen economists out of 22 (representing about 64%) believe that Japan Bank is likely to raise interest rates at its December meeting.
- Eight of the 22 economists (or about 36%) expect Japan Bank to raise interest rates at its October meeting.
- According to average analysts’ opinions, the interest rate is expected to reach 0.50% by the end of this year, which is 25 basis points higher than its current level.
- Given the recent market reaction to the latest rate hike, Japan Bank is expected to be cautious about taking another step too quickly, which could cause more volatility in financial markets as a result of more volatility in global interest trade, which could result from higher interest rates on the yen.
- The market panic over the previous increase suggests that a gradual approach may be preferable this time, and recent economic growth data, which still shows signs of weakness, may contribute to the Japan’s slow decision to raise interest rates next.
- In such a scenario, Japan Bank may prefer to give the market some time to adjust before implementing another rate increase, and this approach would help avoid exacerbating any market volatility while continuing to address potential concerns about economic growth or financial stability.
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