The Bank of Japan is expected to raise interest rates to their highest level in 30 years.

The market widely expects the Bank of Japan to raise interest rates to their highest level in thirty years on Friday, showing increasing confidence in achieving stable inflation targets. Under the leadership of Governor Haruhiko Kuroda, the policy committee is expected to raise the overnight call rate by 0.25 percentage points to 0.75% at the end of a 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 recent two meetings, two members have already supported a rate hike. Earlier this month, Kuroda made a clear signal to raise rates, and subsequent data showed stable wage growth and less impact than expected from U.S. tariffs, fueling expectations for a rate hike. This is also the first time since Kuroda took office that all Japan Bank observers surveyed by the media have unanimously predicted a rate hike.