The Bank of Japan will hike interest rates only once more this year, most likely during the third quarter to 0.75%, according to a majority of economists in a Reuters poll published on Thursday.

Japan’s inflation surged in January, with consumer prices rising 4% year over year—the highest level since early 2023. This has intensified pressure on the Bank of Japan (BOJ) to tighten its ultra-loose monetary policy.

Japans core consumer price index (CPI) rose 3.2% year-over-year in January, reaching a 19-month high, exceeding the market forecast of 3.1% and Decembers 3.0% gain. The surge reinforces expectations that the Bank of

The Bank of Japan could raise interest rates twice more this year if inflation stays around current levels, which would help prevent the yen from testing fresh lows, Japan's former top currency diplomat Hiroshi Watanabe said on Tuesday.