BOJ Rate Hike Expectations Surge to 90% Probability by October

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According to Nikkei Asia as of July 27, investors now expect a 90% probability of the Bank of Japan raising policy rates to 1.25% by October, up significantly from approximately 60% at the end of June. The shift reflects concerns over yen weakness near 40-year lows and renewed inflation worries amid Middle East tensions. Bank of America Securities Japan and HSBC analysts forecast the rate increase will occur in October, citing rising consumer price index readings and strengthening inflation expectations.
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