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Most Economists See BOJ Raising Rates Again by Year-End

BY MT Newswires | ECONOMIC | 07:12 PM EDT

07:12 PM EDT, 06/17/2026 (MT Newswires) -- Most economists expect the Bank of Japan to raise interest rates again by the end of 2026 following this week's hike to 1%, Bloomberg reported Wednesday.

In a Bloomberg survey of 44 economists, 90% forecast another increase by December, while 36% expect a move in October.

The BOJ raised rates Tuesday for the first time since December, citing risks that underlying inflation could overshoot its 2% target.

Economists now see rates peaking at 1.75% in the current tightening cycle, up from a previous median estimate of 1.5%, according to the survey.

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.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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