BoJ Set to Hike Interest Rate to Highest Level in 31 Years

The Bank of Japan is set to raise its policy interest rate by 25 basis points to 1.25%, marking the highest level in 31 years.

This move comes as the country grapples with rising energy costs, fueling inflationary concerns and yen depreciation.

Rising inflation and growth expectations exceeding estimates have strengthened expectations that the BoJ will adopt a tighter monetary policy.

According to Asian markets analyst Sadi Kaymaz, the BoJ's decision will be driven by data, with inflation taking primary focus. He noted that Japan's core inflation accelerated for the second consecutive month, rising to 1.8%.