The Bank of Japan’s monetary policy meeting on January 23–24, 2025, is a key event, with expectations of a 25 basis point rate hike to 0.5%, the highest since 2008. The decision is driven by persistent inflationary pressures, with Japan’s core inflation exceeding the 2% target and wholesale inflation reported at 3.8%. Wage growth and global monetary tightening trends are further supporting the shift. A rate hike could strengthen the yen against the U.S. dollar, attracting foreign investments while impacting the USD/JPY exchange rate. This pivotal policy change signals Japan’s move toward tackling inflation amid global financial complexities.

Share expert opinions and economic analyses on whether the Japanese economy can sustain positive interest rates. Explore the benefits and potential risks of this significant monetary policy shift.

Stay informed about the latest regulatory changes in Japan's financial services sector. This update covers recent developments, compliance tips, KYC & AML updates, and policy analysis.