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Bank of Japan Set to Raise Rates in December

12/5/2025

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Summary

Story summary

The Bank of Japan (BOJ) is poised to raise rates from 0.5% to 0.75% at December 18–19 meeting.
Governor Kazuo Ueda indicated a hike is likely, the first since January, with 90% market odds.
The government, led by Prime Minister Sanae Takaichi, is expected to support the decision.
Ueda noted uncertainty regarding the appropriate level for future hikes, as the BOJ's neutral rate is estimated between 1% and 2.5%.

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Story summary

The Bank of Japan (BOJ) is poised to raise rates from 0.5% to 0.75% at December 18–19 meeting.
Governor Kazuo Ueda indicated a hike is likely, the first since January, with 90% market odds.
The government, led by Prime Minister Sanae Takaichi, is expected to support the decision.
Ueda noted uncertainty regarding the appropriate level for future hikes, as the BOJ's neutral rate is estimated between 1% and 2.5%.