Bank of Japan Nears 25-Basis-Point Rate Hike

The Bank of Japan is preparing to raise interest rates by 25 basis points during its meeting on September 17–18 to address persistent inflationary pressures, according to *Nikkei Asia*.

The bank previously raised rates by the same margin in June; this new hike would mark a continuation of the gradual shift away from its ultra-loose monetary policy.

The decision is expected to impact the Japanese yen and capital flows, while the bank simultaneously monitors the effects of rising borrowing costs on businesses, households, and economic activity.