World Economy

BOJ Signals Aggressive Rate-Hike Path as Global Inflation Pressures Mount

Bank of Japan officials are preparing markets for more aggressive monetary tightening, with board member Hajime Takata calling for swift interest rate increases to head off persistent price pressures. Governor Kazuo Ueda indicated the central bank will weigh upside inflation risks heavily in upcoming policy decisions, signaling a rate move could come later this month. U.S. Treasury Secretary Scott Bessent, meeting with Ueda, reaffirmed Washington's support for Japanese rate increases aimed at strengthening the yen. The BOJ's shift toward tighter policy mirrors broader global monetary tightening. Australia's economy unexpectedly accelerated last quarter, bolstering the Reserve Bank's case for additional rate hikes amid persistent inflation. The European Central Bank also plans to raise rates, though officials warn a single increase won't restore price stability.