BOJ Set for Second Rate Hike This Year Amid Inflation Concerns

The Bank of Japan is poised to increase its policy rate to 1.25% at its meeting on September 17, according to sources familiar with the matter.

This move would mark a significant tightening cycle for the BOJ, which has been gradually increasing interest rates since March 2024 when it ended its negative interest rate policy.

The decision comes as the central bank seeks to combat rising inflation driven by higher crude oil prices and a weak yen. Officials will assess economic conditions before making a final decision.