A Reuters poll predicts the Bank of Japan will raise interest rates by 25 basis points in December, reaching 1% by September next year.

A Reuters poll conducted from December 2nd to 9th showed that the vast majority of economists expect the Bank of Japan to raise interest rates by 25 basis points to 0.75% at its December meeting and to raise borrowing costs to at least 1% by the end of September next year. This comes after sources indicated that the Bank of Japan is expected to implement its first rate hike since January at its December meeting. Given inflation risks and a weak yen, the government led by Prime Minister Sanae Takaichi is expected to tolerate this decision. 90% of economists (63 out of 70) expect the Bank of Japan to raise short-term interest rates from 0.50% to 0.75% at its meeting next week, a significant increase from 53% in last month's survey. Slightly more than two-thirds of respondents (37 out of 54) said that interest rates will reach at least 1.00% by the end of September next year. (Jinshi)