Toru Fujioka

The Bank of Japan will probably raise its benchmark rate next month at a meeting that will determine whether authorities can keep from falling behind

The Bank of Japan needs to keep raising interest rates in response to developments in the economy and inflation, Governor Kazuo Ueda said in his final scheduled speaking event ahead of a closely watched policy meeting.

Bank of Japan officials are set to consider a quarter percentage point increase to the benchmark interest rate this month and see the possibility of a further rate hike later this year, according to people familiar with the matter.

Japan’s holdings of foreign securities fell sharply in May following its record currency market intervention to support the yen over the past month.

Japan's holdings of foreign securities fell sharply in May, a sign that the government may have tapped overseas assets, including U.S.

Japan likely drew on its holdings of foreign securities, including U.S. Treasuries, to finance its record currency-market intervention over the past month, a move that may draw attention from Washington.

The BOJ is widely expected to raise its benchmark interest rate a quarter percentage point, in what would be the first adjustment since December.

Bank of Japan watchers are penciling in two hikes to the benchmark interest rate this year — with the first coming next week — as they increasingly see the war in Iran as likely to spark a sustained run of inflation.

BOJ watchers anticipate two rate hikes in 2026; first next week amid inflation concerns. Economists expect rates to rise from current level, with potential hike up to end of year.

Bank of Japan Governor Kazuo Ueda has been hospitalized and is expected to miss next week’s policy meeting, according to the BOJ.