The move would take Japan’s policy rate to its highest level in 31 years, marking a further step away from ultra-loose monetary settings.
Bank of Japan plans to raise interest rates to 1% next week, a move that would bring Japan’s policy rate to a 31-year high. The increase would signal a further normalization of monetary policy after a long period of very low borrowing costs, with markets likely to watch for its impact on the yen, bond yields and broader risk assets.