In a Reuters survey of economists on the BOJ, a September rate hike became the majority view, while the outlook for the terminal rate also shifted higher. The survey was compiled in mid-August.
Some 57% of economists expect the BOJ to raise rates in September, a shift from the July survey. Of the respondents, 10 expect the policy rate to be raised further to 1.50% in October or December.
About two-thirds of the roughly 54 respondents forecast the policy rate reaching at least 1.5% by the end of March next year, three months earlier than in the July survey. About 60% expect it to reach at least 1.75% by the end of the third quarter of 2027.
Half forecast a terminal rate of 1.75%, up from 19% the previous month. The dollar/yen rate was trading around 158.92, down 0.17% intraday.
Expectations of a rate hike are likely to strengthen ahead of the BOJ's September meeting, while the expected level of the terminal rate may also influence market sentiment. The shift away from Japan's past easing policies is being watched as a potential driver of market activity.