The Bank of Japan will raise its key interest rate to 1.0% in June, nearly two-thirds of economists said in a Reuters poll, as it presses ahead with efforts to normalise monetary policy amid rising inflation concerns from the war in Iran. The policy rate was held steady at 0.75% last month to assess repercussions from the conflict but three of the BOJ's nine board members dissented and called for a hike to 1.00%, signalling growing alarm over inflationary pressures from the war-driven energy shock.