What is the Bank of Japan expected to do with interest rates?

The Bank of Japan is widely expected to raise interest rates to 0.75%.

Why might the Bank of Japan raise interest rates?

A rate hike aims to strengthen the yen and contain inflation, which has been above the target for months.

What was Japan's latest inflation rate?

Japan's consumer inflation rate dropped to 2.9% in November.

Home / Business and Economy / Bank of Japan Poised for Major Rate Hike

Bank of Japan Poised for Major Rate Hike

19 Dec, 2025

•

Summary

Bank of Japan may raise rates to 0.75%, highest since 1995.
An 86.4% probability suggests a hike is highly anticipated.
Japan's consumer inflation dropped to 2.9% in November.

Bank of Japan Poised for Major Rate Hike

Investors across Asia-Pacific markets are closely watching for the Bank of Japan's crucial decision today. Expectations are high for a rate increase, potentially to 0.75% – a level not seen since 1995. Data indicates an 86.4% probability of this historic move.

A rate hike is anticipated to bolster the Japanese yen against the U.S. dollar and help curb persistent inflation. Inflation has remained above the Bank of Japan's target for 44 months straight, making this decision critical for economic stability.

Recent government data revealed a drop in Japan's consumer inflation rate to 2.9% for November. Core inflation, excluding volatile fresh food prices, held steady at 3% from October, aligning with economists' forecasts.

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.