Bank of Japan watchers still expect the pace of interest rate hikes to be gradual, although they now see rates rising to a higher level in the current cycle, according to the latest Bloomberg survey.
All 52 economists polled expect no policy change at the two-day meeting that ends next Wednesday. July remains the favorite choice for the next hike, with 48% expecting a move then, dropping from 56% in the previous survey.
A clear majority of 76% predicts the BOJ will stick to a roughly half-yearly pace for hikes, expecting the next increase to come between June and September. At the same time, a growing minority forecasts an earlier move — 13% project the next increase to take place on May 1, up from 4% in the last survey.
