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BoJ may weigh another rate hike at September meeting

Jiji Press cites upside inflation risks from AI-related demand, a weaker yen, and higher crude oil prices when weighing the next policy decision on September 17 to 18.

Reported · Written up by our desk · Central Banks

FXStreet, citing a report from Jiji Press, says the Bank of Japan may consider an additional interest rate increase at its next policy meeting on September 17 to 18. The report comes after the BoJ left rates unchanged in July.

The outlet also points to Japan facing further price increases, linked to rising demand tied to artificial intelligence, the yen’s sharp depreciation, and higher crude oil prices.

Jiji Press further notes that many market participants had expected the BoJ to lift rates roughly every six months. The BoJ is tasked with maintaining price stability, targeting inflation around 2%.

The story outlines that the BoJ shifted away from ultra-loose policy in March 2024 by lifting interest rates, reversing course later in 2024 after previous stimulus contributed to yen weakness and inflation above target.

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