World Economy

BOJ Could Pursue Aggressive Rate Hike Path if Yen Weakness Continues

FW Desk News

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Friday, September 4, 2026

Japan's central bank may raise interest rates at three consecutive policy meetings through year-end if currency weakness persists, according to analysis from Nomura Securities. The scenario represents an extreme case but signals potential monetary tightening momentum. Meanwhile, global central banks remain divided on rate trajectories heading into the final quarter. New Zealand's Reserve Bank is likely to delay its next increase until December, while European policymakers are expected to complete their hiking cycle imminently. In contrast, Kazakhstan's central bank delivered its third consecutive rate cut as inflation cooled to its lowest level in more than a year, though officials acknowledged limited room for further reductions.

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