BOJ Hikes Expected by October Amid Weakening Yen and Soaring Oil Prices

The Bank of Japan (BOJ) is expected to raise interest rates again by October due to a weaker yen and higher global oil prices.

Data from Totan Research and Totan ICAP shows investors believe there's a 90% chance the BOJ will hike rates to 1.25% annually by October, up from 60% last month.

The yen's depreciation is the main reason for the increased expectations of an early rate hike, falling to 163.99 per dollar last week, its lowest since November 1986.

Rising global oil prices are also a factor pushing up inflation in Japan, with Brent crude futures topping $100 per barrel and West Texas Intermediate (WTI) futures rising above $90 per barrel.