BoJ Expected to Raise Rates to 1.25% in September

A recent Reuters poll of economists suggests that the Bank of Japan will raise its benchmark interest rate to 1.25% in September, marking a significant shift away from its ultra-loose monetary policy.

This expected hike would be another step in the BoJ's normalization process, following earlier adjustments in 2024 and 2025.

The decision is seen as a response to robust wage growth and a weakening yen, which has increased import costs and pressured domestic prices.