The Bank of Japan is expected to raise interest rates to the highest level in thirty years.

Jinse Finance reported that the market generally expects the Bank of Japan to raise its benchmark interest rate to the highest level in thirty years this Friday, indicating the bank's growing confidence in achieving a stable inflation target. Under the leadership of Governor Kazuo Ueda, the policy committee is expected to raise the overnight lending rate by 0.25 percentage points to 0.75% at the conclusion of its two-day meeting. This would be the first rate hike since January and is expected to be unanimously approved by all committee members. In the last two meetings, two members had already supported a rate hike. Earlier this month, Kazuo Ueda sent an unusually clear signal of a rate increase, and subsequent data showed that wage growth momentum remained stable and the impact of U.S. tariffs was less than expected, further fueling market expectations for a rate hike. This is also the first time since Kazuo Ueda took office that all Bank of Japan watchers surveyed by the media unanimously predicted a rate hike. (Zhitong)