BOJ Set for Historic Rate Hike Amid Inflation Concerns
The Bank of Japan is widely expected to raise its policy rate from 1% to 1.25%, the highest level in about 31 years, at its meeting on Friday, September 18.
This decision comes as inflation has remained above the central bank's 2% target for most of the past four years and the yen has fallen to multidecade lows against the dollar.
Koichi Hamada, a former top aide to Shinzo Abe and key adviser behind Abenomics, now recommends monetary constraint, stating 'The situation is completely different now.'
The BOJ's recent pace of quarter-point hikes has been about every six months, but the latest hike would come just three months after June.
Oxford Economics expects further hikes in September, December 2026, and April 2027 to reach 1.75%, citing yen pressure and rising inflation expectations.