BOJ Rate Hikes Loom as Inflation Pressure Builds

A former Bank of Japan (BOJ) policymaker believes that Japan's era of ultra-low interest rates is coming to an end, with rate hikes expected about once a quarter.

Makoto Sakurai, the ex-BOJ board member, predicts that the central bank will raise its policy rate from 1.25% to around 2% by June next year, mainly due to higher import bills and inflationary pressure.

Sakurai expects the BOJ to revise its inflation forecasts in its quarterly outlook report due in October, setting up another hike as early as October or more likely December, followed by further moves over subsequent quarters.