BoJ Poised for Third Rate Hike in Nine Months Amid Inflation Fears

The Bank of Japan (BoJ) is poised to raise its policy interest rate for the third time in less than 10 months, according to Asian markets analyst Sadi Kaymaz. The move would increase the rate from 1% to a 31-year high.

The decision comes as Japan's economy grapples with rising energy costs and inflationary pressures, exacerbated by geopolitical tensions in the Middle East.

Kaymaz noted that core inflation accelerated for the second consecutive month, reaching 1.8%, while Japan's consumer price index (CPI) rose 1.9% year-on-year in July, its fastest pace since December 2025.