BOJ to Hike Rates Every Quarter, Ex-Policymaker Says

The Bank of Japan is expected to raise interest rates roughly once every three months and push them up to 2% by around June next year, according to former bank board member Makoto Sakurai.

Sakurai said the BOJ has shifted its policy approach to one focused on addressing broadening price pressures from surging fuel costs, which have spiked around 70%-to-80% in recent months.

A weak yen and robust AI-related demand are also boosting manufacturers' profits, underpinning the economy and fuelling demand-driven price pressures, Sakurai said.

The BOJ will probably revise up its inflation forecasts at its quarterly outlook report due in October and raise interest rates again most likely in December, he added.