BOJ's Upcoming Rate Increase: The Reasons July Is in the Spotlight
Bank of Japan Poised for Further Rate Increase
According to a recent survey of economists, the Bank of Japan is likely to keep its main interest rate unchanged for the time being, with expectations of another increase coming in July. Over 75% of analysts predict that the rate—now at a 30-year peak of 0.75%—will rise to at least 1% by September. Despite this gradual move toward tighter monetary policy, with the median projection for the peak rate at 1.5%, the BOJ stands apart from other major central banks, many of which are currently lowering interest rates. The central bank’s approach is further complicated by the arrival of Japan’s new Prime Minister, Sanae Takaichi, who describes herself as a reformer.
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