Economists predict delayed Japan interest rate hikes, lower peak

Bank of Japan watchers anticipate delayed interest rate hikes and a lower peak rate due to concerns over the economic impact of US tariff measures. This shift reflects a more pessimistic outlook. A Bloomberg survey revealed that most economists now expect the BOJ to hold rates steady at its upcoming meeting. Expectations for a rate hike by September have significantly decreased, with many now projecting hikes later in the year or even into January 2026. The survey also indicated a potential recession for Japan's economy, with analysts citing US pressure and persistent inflation as factors influencing the BOJ's decisions. The yen's recent strength is also a key consideration.