Bank of Japan September hike expectations surge

JUST IN: 57% of economists now expect the Bank of Japan to raise rates in September, up from just 5% in the previous survey.
A narrow majority also expects rates to reach at least 1.50% by Q1 2027, which would be the highest level since the 1990s.
At the same time, 89% of economists say Prime Minister Takaichi's fiscal policies are putting downward pressure on the yen.
Japan is increasingly caught between inflation, currency weakness and rising government borrowing costs.
The BOJ may now face growing pressure to normalize policy faster than markets expected only weeks ago.