Japan’s central bank is facing a delicate policy decision as investors assess whether it could accelerate monetary tightening with a larger-than-usual interest rate increase at its September meeting.
The Bank of Japan (BOJ) is widely expected to raise its policy rate by 25 basis points to 1.25% at its September 17-18 meeting. However, speculation has emerged over whether the central bank could opt for a 50-basis-point increase, a move that would mark a sharp departure from its gradual approach.