BOJ Set for Rate Hike Amid Inflation Pressures

The Bank of Japan (BOJ) is expected to raise interest rates for the first time in months, according to a recent survey by CNBC. The BOJ's two-day meeting on Friday will likely see rates rise to 1.25%, marking a new three-decade high. The decision comes as inflation pressures continue to build, with Japan's headline inflation rate hitting its highest this year at 1.9% in July.

Around 89% of respondents to the CNBC survey expect the BOJ to hike rates by 25 basis points, citing higher inflation, wages, and pressure from the US government. This would signal a faster pace of tightening than the six-month interval seen since March 2024.