The Bank of Japan is poised to raise its policy interest rate to 1.25%, a 31-year high, as rising oil prices and import costs intensify inflation risks and strengthen the case for further monetary policy normalisation, Reuters reported.
The expected 25-basis-point increase would mark the first rate hike in three months and extend the central bank's gradual withdrawal from its long-standing ultra-loose monetary policy. Reuters reported that the decision comes as policymakers assess whether rising costs are becoming more persistent and could push inflation higher.
