Half of economists still see BOJ waiting until December to hike

Half of surveyed economists still expect the Bank of Japan to wait until December to bump its benchmark interest rate higher, with Prime Minister Sanae Takaichi’s government seen as a key obstacle to further action, according to a Bloomberg survey.

Some 50% of 52 economists selected December as the most likely timing for the next move after the BOJ raised the rate last month, according to the poll. Another 40% said it would come in October.

Takaichi is known to support monetary easing, and her government’s influence will be a deterrence for the board to proceed along the path toward policy normalization, according to 59% of the respondents. An overwhelming majority — 82% — forecast the pace of rate hikes to be roughly once every six months, an increase from 71% in a June survey.