BOJ signals faster rate hikes to curb inflation
The Bank of Japan anticipates faster and more regular interest rate increases to counter rising inflation risks. Upcoming economic data releases will heavily influence the timing of the next potential policy move.
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The Bank of Japan expects interest rate increases to happen faster as it pre-empts inflation risks, according to people familiar with the matter. The policy shift raises pressure on the USD/JPY exchange rate as the central bank aims to stem import costs. Policymakers are targeting a policy rate of 2% by around June next year, up from the current 1.25%.
