BOJ expected to hike rates by 25 basis points to fresh three-decade high: CNBC survey

The Bank of Japan is expected to raise its policy rate by 25 basis points to 1.25% when its two-day meeting concludes Friday, according to a CNBC survey of economists and strategists. The move would mark a fresh three-decade high for Japanese rates and signal an accelerating tightening cycle driven by inflationary pressures.

The expected hike would push Japan's benchmark rate to its highest level since the mid-1990s, continuing the BOJ's departure from years of ultra-loose monetary policy. The central bank has been under pressure to normalize rates as inflation persists above its 2% target.

A 25-basis-point increase would represent the BOJ's continued shift away from its historic stimulus posture, with implications rippling through currency markets and Japanese government bond yields. The yen has been sensitive to rate-differential plays between Japan and other major economies, particularly the United States.