BOJ set to raise policy rate to 1.25% this month, sources say

The Bank of Japan is reportedly preparing to raise its policy rate from 1.0% to 1.25% at its meeting later this month, according to sources familiar with the matter. This would mark a continuation of the BOJ's gradual tightening cycle, with the move likely aimed at addressing inflation and normalizing monetary policy. The hike, if confirmed, would be a significant step in Japan's exit from ultra-loose policy, with implications for global yields and carry trades.