The Bank of Japan is anticipated to increase its benchmark interest rate to 1% by the end of June, according to a Reuters survey of economists. This expectation comes amid heightened market concerns over rising energy prices and inflationary pressures due to the ongoing conflict in Iran. The survey, conducted from April 7 to 14, revealed that 65% of economists foresee a rate hike by June, up from 60% in March. While the timing of the rate increase remains uncertain, with 38% of economists predicting an April hike and 35% expecting it in June, the consensus is that the Bank of Japan will tighten monetary policy this quarter. Looking further ahead, the median forecast suggests borrowing costs will rise to 1.25% in the fourth quarter, with a further increase to 1.50% expected by the third quarter of 2027.