Survey: Half of economists estimate that the Bank of Japan will not raise interest rates until December, hindered by pressure from the government.

Among the economists surveyed by Bloomberg, half predict that the Bank of Japan will not raise interest rates until December, with Prime Minister Sanae Takaichi's government being the main factor hindering further action by the central bank. According to the survey, out of the 52 economists interviewed, about 50% believe that after the Bank of Japan raised rates last month, the next move is most likely to be in December, with another 40% believing it will be in October. 59% of respondents said that Takaichi has always supported loose monetary policy, and her government is seen as a constraint on the Bank of Japan's efforts to normalize interest rate policy. Up to 82% of those surveyed estimated that the pace of rate hikes will remain roughly every six months, higher than the 71% in the June survey. The survey shows that economists' confidence in the Bank of Japan's ability to raise rates is still lower than that of market participants; as of Thursday morning, market participants believe there is an 83% chance of taking action before October. In reports released after the survey, sources revealed that Bank of Japan officials are open to a faster pace of rate hikes than the consensus among economists, as the ongoing weakness of the yen has intensified inflation risks.