BOJ Prepares for Second Rate Hike in Three Months Amid Inflation Worries

The Bank of Japan is poised to raise its policy interest rate for the second time in three months, as it seeks to combat inflation risks fueled by a weak yen and surging oil prices.

The BOJ's two-day policy meeting, which kicked off on Thursday, is expected to result in a rate hike to 1.25 percent from 1 percent, marking its highest level in over three decades.

This move comes as the yen has depreciated to its lowest value against the U.S. dollar in decades, making imports more expensive and contributing to inflationary pressures.