According to Kyodo News and Reuters, the Bank of Japan (BOJ) plans to raise its policy interest rate by 25 basis points from approximately 1.0% to around 1.25% at its monetary policy meeting on September 17-18, which would be the highest level in about 31 years. Sources familiar with the matter stated that the central bank is considering accelerating the pace of rate hikes to roughly once per quarter. The increased expectation of a rate hike is primarily driven by factors such as the depreciation of the Japanese Yen, rising oil prices pushing up inflation, and pressure from US Treasury Secretary Scott Bessent. The BOJ prefers a 25-basis-point hike to avoid market disruption and allow time to assess the impact of higher rates.