TechFlow news, on February 20, according to Jinshi Data citing a Reuters survey, most economists believe the Bank of Japan will raise interest rates only once more this year, most likely increasing the rate to 0.75% in the third quarter.
The survey also showed that analysts forecast a median wage increase of 5% in this year's wage negotiations, close to last year's highest level in 33 years, which is an encouraging signal for the Bank of Japan to continue raising rates.
In the survey conducted from February 12 to 18, all 61 economists expected borrowing costs to remain unchanged at the Bank of Japan's meeting on March 18–19. Only a minority—19 out of 61—expected at least one 25-basis-point rate hike next quarter, lifting rates to 0.75%. Among 58 respondents, over 65% (38 people) anticipated the Bank of Japan would raise rates to 0.75% in July or September.
Jun'ki Iwahashi, senior economist at Sumitomo Mitsui Trust Bank, said: "The Bank of Japan needs to confirm the outcome of this year's wage negotiations, how widespread these wage gains are among small and medium-sized enterprises, and also assess the impact of the January rate hike."
