More than two-thirds of economists surveyed expect the Bank of Japan (BOJ) to raise interest rates in August, a government-affiliated association said today.
The monthly survey by Japan's Economic Planning Association found that 23 of 32 economists who responded saw the central bank lifting the overnight call rate target from the current 0.5 per cent next month.
Five forecast the next policy move will be in September, and two predicted an October rate hike. The remaining two economists saw a policy move in November, according to the survey, conducted between June 28th and July 6th.
In a widely expected move, the central bank last week kept interest rates on hold. Its decision was by a 8-1 vote, with one board member calling for a rate rise.
A Reuters survey of 57 market participants conducted after the two-day policy meeting found that 45 of them expect the BOJ to raise the key overnight call rate target to a 12-year high of 0.75 per cent in August.
Economists have long predicted a rate rise as early as August.