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Market Chatter: BOJ Seen Raising Rates to 1% Next Week, With Second Hike By Year-End

BY MT Newswires | ECONOMIC | 07:28 PM EDT

07:28 PM EDT, 06/09/2026 (MT Newswires) -- Nearly all economists surveyed expect the Bank of Japan to raise its benchmark interest rate by a quarter point to 1% when its policy board concludes a two-day meeting on June 16, Bloomberg reported Tuesday, citing a Bloomberg News poll.

Some 49 of 51 economists surveyed forecast the hike, which would bring rates to their highest level since 1995, while respondents also see the rate rising to 1.25% by year-end, implying one additional hike before December, the report said.

Rate hike expectations gained momentum after BOJ Governor Kazuo Ueda signaled last week he was more concerned about upside inflation risks than potential economic fallout from Middle East instability. Some 94% of survey respondents said Ueda's speech made a June hike either certain or highly likely, Bloomberg said.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

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