After the US-Japan trade agreement is reached, observers predict that the Bank of Japan may raise interest rates sooner.
The results of a media survey show that out of 45 economists surveyed, approximately 42% expect the Bank of Japan to raise interest rates in October, which is an increase from the previous survey where 32% predicted a rate hike. The proportion of economists predicting a rate hike in January next year has slightly dropped to one-third, while the percentage predicting a rate hike in December this year has doubled to 11%. No one believes the Bank of Japan will take action in September's next meeting, but about a quarter of the respondents think that in a risk scenario, a rate hike could come as early as next month; approximately 60% of the economists believe that the earliest possibility for the next rate hike is in October.
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