BOJ to raise rates to 1.50% in December, sticking to quarterly pace: Reuters poll

According to a Reuters poll, the majority of economists predict the Bank of Japan will raise interest rates to 1.50 percent in December, continuing a quarterly increase that began with a single rate hike per year. This decision is driven by rising energy and import costs, worsened by a weak yen and the Middle East conflict. The period of relative stability in the yen, which faced interventions from Japanese authorities and the US Treasury, also supports the case for a December rate increase.

Board member Junko Koeda stated that the central bank should not be overly cautious about raising rates, given the significant upside risks to inflation. Nearly 70 percent of the 78 economists surveyed expected the Bank of Japan to raise its policy rate to 1.5 percent in the current quarter, nearly double the share in the previous poll.