While analysts predict no change at this week's Bank of Japan (BOJ) meeting, opinions are divided on future rate hikes. Some experts anticipate a move in October or December, citing strong inflation and wage data, while others believe the yen's appreciation and potential Fed cuts will deter the BOJ from raising rates again this year.
There is consensus among the 32 analysts polled by CNBC that there would be no change at this week's BOJ meeting, which concludes Friday.Analysts polled by CNBC gave a year-end forecast for the yen of 140.2 against the U.S. dollar.
Gregor Hirt, global chief investment officer for multi asset at Allianz Global Investors, sees a strong chance of one hike this year, most likely in October. On the other hand, Richard Kaye, a portfolio manager for Japan equities at Comgest, told CNBC it is highly unlikely the central bank will raise rates again this year, especially if the Japanese yen continues to appreciate.
The BOJ surprised some market participants in July, when it decided to raise borrowing costs to 0.25% which helped spur aA Reuters poll of economists published last month estimated a 57% chance that the BOJ would raise rates again by year end.CNBC also surveyed 28 analysts about their end of year forecast for the Japanese yen against the dollar. The average projection is 140.2.
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