The Bank of Japan will raise its interest rate in July in addition to unveiling a roadmap for its path toward quantitative tightening (QT), according to one-third of economists surveyed by Bloomberg.
Some 33% of 43 economists said the upper bound of the policy rate will be raised from 0.1% at the board meeting that concludes on July 31, the survey conducted on Tuesday showed. Prior to this month’s meeting, about the same percentage were penciling in July for a hike.
When the BOJ said in June that QT details wouldn’t come until July, some economists said the likelihood of a July move had been diminished, as explaining QT details in addition to a hike seemed to be too much in one go. Meanwhile, those expecting a hike in October now stand at 42%, up from 33% previously.