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BOJ to lift rate of interest to at the least 0.50% by end-March, 51 of 52 economists say

Reuters poll:

  • BOJ to hold key interest rate at 0.25% in December, say 58% of economists vs 44% in November poll
  • BOJ to raise interest rate to at least 0.50% by end-March, 51 of 52 economists say
  • Rate of pay increase in next fiscal year’s labor talks stands at 4.7%, falling short of 5.1% this fiscal year – median forecast
  • U.S. President-elect Trump tariffs to affect Japan economy negatively or somewhat negatively, say 94% of economists

More from Reuters report:

  • While inflation and wages data show the Japanese economy is
    developing as the BOJ had projected, the central bank is mindful
    of risks abroad, said Mari Iwashita, chief market economist at
    Daiwa Securities.
  • “If the BOJ is to ‘carefully examine the future economic
    developments and policy management’ of the U.S., it would be
    better to wait until the January meeting next year to confirm
    the economic situation as well as the policy management of the
    incoming Trump administration”

This article was written by Eamonn Sheridan at www.forexlive.com.

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