BOJ Prepares for More Frequent Interest Rate Hikes Amid Rising Inflation

The Bank of Japan (BOJ) is preparing to raise interest rates more frequently, according to recent statements from Governor Kazuo Ueda. This shift in policy aims to combat inflation, which has been increasing steadily.

Thursday's Tankan business survey and Friday's Tokyo inflation data will be crucial indicators for the BOJ's next move, with a Reuters poll predicting Tokyo core inflation to reach 2.4% in September, up from 1.8% in August.

Former BOJ board member Makoto Sakurai expects the policy rate to rise to 2% by around June next year, while new BOJ forecasts due next month will provide more insight into their future plans.