BOJ Set for Rate Hike as Inflation Concerns Mount

The Bank of Japan plans to raise its policy rate to 1.25 percent from 1.0 percent at its September meeting, sources said Tuesday.

This move would be the BOJ's first rate hike in three months and mark the highest level since about 31 years ago.

The central bank aims to address rising prices amid higher crude oil prices and a weak yen, with the goal of correcting the yen's depreciation against the U.S. dollar.

The BOJ has raised rates approximately every six months since ending its negative interest rate policy in March 2024.