BOJ Set to Lift Rates Next Week, May Signal Faster Tightening

The Bank of Japan (BOJ) is expected to raise interest rates next week, likely by 25 basis points, potentially signaling a faster pace of future tightening if inflationary pressures increase the risk of an inflation overshoot. This assessment is based on insights from four sources familiar with the central bank's thinking, indicating a hike to 1.25 percent for the BOJ's policy rate.