BOJ Expected to Deliver Hawkish Rate Hike Amid Rising Inflation

The Bank of Japan is expected to raise its interest rates on Friday, with markets anticipating a quarter-point hike to 1.25%, the highest level in over 31 years.

This decision comes amidst rising inflation, strong GDP data, and pressure from the US administration, which has prompted a hawkish shift in monetary policy.

The move is also driven by higher consumer prices, with Japan's Consumer Price Index (CPI) growing at its fastest pace in seven months, reaching 1.9%, just below the Bank of Japan's 2% target for price stability.

The Japanese central bank will follow the Federal Reserve and European Central Bank in tightening monetary policy as global inflation continues to rise due to supply disruptions caused by the war in the Middle East.