The Bank of Japan is set to raise interest rates to a three-decade high on Friday, marking another landmark shift for a country long accustomed to near-zero rates and unconventional monetary policy.
The central bank is widely expected to raise short-term interest rates to 0.75% from 0.5% at its two-day policy meeting ending Dec. 19. While still low by global standards, the move adds weight to Japan’s growing conviction that the country has achieved a sustainable cycle of rising inflation and solid wage gains.
