BOJ May Raise Rates to 2% by June

Economic Times Markets · stocks

The Bank of Japan could raise interest rates approximately every three months, reaching a 2% policy rate by June 2027 to combat rising inflation, according to former BOJ board member Makoto Sakurai. This follows a recent hike to 1.25%, the highest in 31 years, signaling a move away from ultra-loose policy. Sakurai noted that higher fuel costs, a weak yen, and strong AI demand are increasing inflation risks.