world-economy

BOJ Poised for Back-to-Back Rate Increases as Inflation Battle Intensifies

The Bank of Japan is expected to raise interest rates in June followed by another increase as soon as October, according to Hideo Hayakawa, a former central bank executive director. The dual-rate scenario reflects the BOJ's need to accelerate its monetary tightening campaign. Hayakawa said the institution needs to catch up on inflation fighting, noting it has already fallen slightly behind the curve. The June rate hike represents the bank's first widely anticipated move. Market participants are bracing for rapid succession action through the year as policymakers work to contain price pressures.