BOJ Set to Raise Rates for First Time in 31 Years Amid Rising Inflation

The Bank of Japan is expected to raise its policy rate from 1.0% to 1.25%, marking the highest level in 31 years, at its monetary policy meeting on September 17-18.

This move is driven by rekindled U.S. inflation, rising crude oil prices, and upside price risks from yen weakness.

According to Mizuho Research Institute estimates, households with mortgages will face an additional annual burden of approximately ¥19,000 (approximately $120), while those aged 29 and under will be hit hardest at roughly ¥50,000 (approximately $330).

However, the average across all households would see a net gain of about ¥6,000 (approximately $39) annually due to higher deposit interest income.