Economists expect BOJ to delay rate hike

A slight majority of economists predict the Bank of Japan (BOJ) will postpone its next interest rate hike until early 2026, citing uncertainty surrounding U.S. tariff policies. The Reuters poll revealed 52% of economists expect the BOJ to hold rates at 0.50% by the end of 2025. Most also anticipate a slowdown in the pace of government bond purchase tapering, and a reduction in super-long bond issuance. This shift reflects concerns about the economic outlook amid volatile U.S. trade policies and rising investor worries about Japan's public finances, despite the BOJ's commitment to tighter monetary conditions.