BoJ Eyes Rate Hike in September Amid Rising Inflation

The Bank of Japan (BoJ) is increasingly likely to raise interest rates at its September policy meeting, according to analysts at Commerzbank.

Commerzbank's assessment suggests that the BoJ's tolerance for further policy normalization is increasing due to persistent inflation and positive wage growth outlook.

A rate hike would likely strengthen the yen, narrow the interest rate differential between Japan and other countries, and make yen-denominated assets more attractive to investors.

The BoJ's next monetary policy meeting is scheduled for September 19-20, 2025, where a rate decision will be announced.