BOJ expected to hike rates by 25 basis points to fresh three-decade high: CNBC survey
The BOJ is expected to hike rates by 25 basis points to a fresh three-decade high, a CNBC survey shows.
TL;DR
- The Bank of Japan is expected to raise rates by 25 basis points to 1.25% at its upcoming meeting.
- This hike would mark an acceleration of the BOJ's tightening cycle, which began in March 2024.
- Higher inflation (1.9% in July), rising real wages (2.4% in July), and U.S. government pressure are cited as reasons for the hike.
- The U.S. is pressuring Japan for a stronger yen and to continue its rate-hiking cycle.
- Treasury Secretary Scott Bessent urged BOJ Governor Kazuo Ueda to take 'decisive market and monetary steps'.
- Some economists anticipate a larger 50 basis point hike, while others expect the BOJ to maintain current rates for now.
- Around 61% of respondents expect the yen to trade between 155 and 160 in the next month.