BoJ Eyes Interest Rate Hike to 1.25% Amid Price Risks

The Bank of Japan (BoJ) is considering raising its benchmark interest rate to 1.25% in its upcoming meeting on September 18, according to a report from Bloomberg.

This move would be a quarter-point increase in response to upward price risks, with the BoJ remaining flexible about future policy decisions.

The BoJ's current ultra-loose monetary policy was introduced in 2013 to stimulate the economy and fuel inflation, but has been reversed in part due to rising inflation in Japan, which exceeded the central bank's target of around 2%.