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Global Market: Bank of Japan Poised for Rate Hike as Oil Prices Fuel Inflation
- On Friday, the Bank of Japan is set to raise its policy rate to 1.25% from 1%, reaching a 31-year high as the central bank joins global peers in fighting persistent inflation pressures driven by soaring oil costs.
- Japan's headline inflation reached 1.9% in July, fueled by increased energy costs from the Iran war. The BOJ aims to move rates toward a neutral level of 1.1% to 2.5%, ending decades of ultra-low borrowing costs.
- Around 89% of analysts surveyed by CNBC expect a 25-basis-point increase, citing higher inflation, higher wages, and pressure from Treasury Secretary Scott Bessent, who urged BOJ Governor Kazuo Ueda to take "decisive market and monetary steps."
- Facing a significant communication challenge, BOJ Governor Ueda must address his post-meeting briefing as markets remain divided on whether hawkish signals will strengthen the yen or upend bond markets already seeing a sell-off.
- Analysts project the BOJ will reach 1.5% by end-March next year and 1.75% in the second quarter of 2027, positioning the central bank to balance inflationary risks while avoiding overheating growth.
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14 Articles
14 Articles
The Economic TimesReposted by 
Times of India
Times of IndiaGlobal Market: Bank of Japan poised for rate hike as oil prices fuel inflation
The Bank of Japan is expected to raise its policy rate by 25 basis points to a 31-year high of 1.25% as rising oil and import costs intensify inflation risks. Investors will watch Governor Kazuo Uedas guidance for signals on further monetary tightening.
·Mumbai, India
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BOJ set to raise interest rates to 31-year high as inflation risks loom
The Bank of Japan is set to raise interest rates to a 31-year high on Friday and signal readiness to keep pushing up borrowing costs, joining other major central banks in fighting persistent inflation pressures driven by soaring oil costs.
·London, United Kingdom
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Coverage Details
Total News Sources14
Leaning Left1Leaning Right3Center5Last UpdatedBias Distribution56% Center
Bias Distribution
- 56% of the sources are Center
56% Center
11%
C 56%
R 33%
Factuality
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