Bank of Japan set to raise interest rates to 31-year high
A hike to 1.25% would bring the BOJ’s policy rate to levels unseen since 1995
On Friday, September 18, the Bank of Japan is poised to raise interest rates to a 31-year high of 1.25%, signaling a significant move towards addressing inflation concerns. This would be the first hike in three months and would bring the policy rate closer to a neutral level for the economy. The Bank of Japan's decision to increase rates comes amid pressure from the Federal Reserve's recent rate hike and expectations of further hikes later in the year.
Analysts predict the BOJ will continue to raise rates, with a potential terminal rate of at least 1.75% by 2027. The move aims to counter inflation risks that may intensify if the weakening yen due to a US rate hike cycle negatively impacts the economy.
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- Bank of Japan set to raise interest rates to 31-year high channelnewsasia.com
