BOJ Says It Will Keep Raising Rates as Inflation Nears 2%

The BOJ's explicit commitment to further hikes, even as it flags upside inflation risks, matters because yen funding has anchored carry trades and risk-asset demand for years. A sustained tightening path would gradually raise the cost of yen-denominated leverage, with knock-on effects for global liquidity conditions. The timing is deliberately vague, so the open question is whether the BOJ moves before inflation durably settles near target or waits for the projected fiscal 2026–2027 window. Watch how Middle East tensions and AI-driven demand feed into the BOJ's exchange-rate calculus.