Will the Bank of Japan raise interest rates? Here's what economists expect

In the survey of 75 economists, 60% (45 respondents) predicted the BOJ would raise short-term interest rates from 0.50% to 0.75% this quarter. By the end of March, 64 of 67 respondents (96%) predict rates will reach at least 0.75%.

When asked when the BOJ would make its next interest rate increase, 46% of 35 economists pointed to January, while 31% chose December and 14% October.

"The balance on the BOJ's policy committee is clearly shifting toward a rate hike," said Kento Minami, senior economist at Daiwa Securities. Minami noted that domestic political uncertainties and global economic conditions could delay the timing of a rate hike, but the yen's depreciation increases upside risks to inflation. "The rationale for an early rate hike remains unchanged," he said.

With the inauguration of new Prime Minister Sanae Takaichi, the government's fiscal policies are also on the agenda. While Takaichi has pledged to increase public spending in areas such as energy and economic security through "responsible, proactive fiscal policies," it is expected that her influence over the central bank will be limited. Twenty of the 30 economists surveyed (67%) said Takaichi's tenure as prime minister would not delay the Bank of the Republic of Turkey's tightening measures.