A Bloomberg survey of 52 economists indicates that the weakening Japanese yen and rising inflation pressures could lead the Bank of Japan to raise interest rates sooner than expected. While the central bank is anticipated to maintain its benchmark rate at 0.75% during the January 22–23 meeting, 48% of economists predict a rate hike by July. However, if the yen continues to depreciate, the Bank of Japan may be forced to act more quickly. The yen is currently trading near 158.5 against the dollar, close to its multi-decade low. Economists have increased their median forecast for the terminal rate in this tightening cycle to 1.5%. The upcoming policy meeting will also focus on the Bank of Japan's updated economic outlook, which may provide insights into future rate hikes.