BOJ Hikes Interest Rate Expectations Amid Elevated Wholesale Inflation

Japan's wholesale inflation remained elevated in August, data showed on Friday, as the producer price index rose 7.6% from a year earlier.

The BOJ raised interest rates to a 31-year high of 1% in June and kept them steady in July but signalled a strong chance of a near-term hike due to mounting price pressures.

Analysts polled by Reuters expect the BOJ to hike rates to 1.25% next week and then to 1.75% in the second quarter of 2027, amid persistent concerns over broadening price pressures and yen weakness.

The yen-based import price index rose 24.8% in August from a year earlier, after a revised 29.3% surge in July, showing the currency's weakness during the month pushed up import costs and broader inflation.