BOJ to Hike Rates Every Quarter Amid Inflation Pressures

The Bank of Japan (BOJ) is expected to raise interest rates roughly once every three months to combat mounting inflationary pressures, according to former bank board member Makoto Sakurai.

Sakurai said that in raising interest rates to a 31-year high of 1.25% in September, the BOJ has shifted its policy approach to one increasingly focused on addressing broadening price pressures from surging fuel costs.

The cost of importing crude oil has spiked around 70%-to-80% in recent months from levels before the US attack against Iran in February, which will boost consumer inflation ahead, Sakurai said.

The BOJ is well aware of such price pressures, which led to a sea change in the way it approaches inflation, Sakurai added.