BOJ Set to Raise Rates to 31-Year High Amid Global Pressure

The Bank of Japan is set to raise interest rates to a 31-year high on Friday, taking its policy rate from 1% to 1.25%. This move is widely expected and would be the first hike in three months.

The BOJ's decision comes as pressure mounts to keep pace with global peers, particularly after the Federal Reserve hiked rates this week. Analysts say a widening US-Japan rate gap could weaken the yen and lift inflation through higher import costs.

BOJ Governor Kazuo Ueda will face intense scrutiny during his post-meeting briefing, as markets closely watch for clues on the timing and pace of further increases. Some analysts predict the BOJ may hike rates to 1.5% by end-March next year and then to 1.75% in the second quarter of 2027.