BOJ Set for Rate Hike as US Exerts Pressure on Japanese Monetary Policy

A Reuters poll found that the Bank of Japan will hike interest rates to 1.25% on September 18 and then to 1.75% in the second quarter of 2027, earlier than previously thought.

The decision comes amid persistent concerns over broadening price pressures and yen weakness. Over 80% of respondents said the joint U.S.-Japan yen-buying intervention had significantly lowered political hurdles for rate hikes.

Treasury Secretary Scott Bessent's meeting with BOJ Governor Kazuo Ueda this month also underscored Washington's growing sway over Japanese monetary policy, raising questions about the bank's independence.