Bank of Japan Likely to Raise Interest Rates Next Week

Economists and insiders predict a rate hike as the BOJ signals readiness to tighten monetary policy further.

The Bank of Japan is expected to raise its short-term interest rate from 0.25% to 0.5% at its January 23-24 meeting, barring major market disruptions.
Market analysts estimate over an 80% likelihood of the hike, which would bring rates to their highest level since 2008.
Governor Kazuo Ueda and Deputy Governor Ryozo Himino have indicated the central bank's willingness to continue tightening policy if economic recovery and inflation trends remain on track.
The International Monetary Fund forecasts additional rate hikes in 2025 and 2026, with Japan's economy projected to grow by 1.1% in 2025 and 0.8% in 2026.
Economists note that Japan's real interest rates remain low, and further increases may hinge on stable inflation and wage growth.