Bank of Japan is expected to hold rates this week — but stay hawkish: CNBC survey

Financial markets are anticipating that the Bank of Japan will maintain its current benchmark interest rate policy at its upcoming central bank meeting. A recent survey of economists indicates a broad consensus that policymakers will use the gathering to signal readiness for a potential rate increase by December or January. This hawkish outlook is driven by persistent domestic inflation trends and ongoing wage growth across the Japanese economy. As the central bank normalizes monetary policy away from long-standing ultra-loose measures, currency markets remain sensitive to any shifts in official rhetoric. A clear hawkish signal from officials could trigger increased volatility in the foreign exchange and domestic equity markets.