The Bank of Japan is set to raise interest rates on Friday (Dec 19) to a three-decade high and pledge to keep hiking borrowing costs, closing the year with two rate hikes despite headwinds from US tariffs and the inauguration of a dovish prime minister. While a hike still keeps its policy rate low by global standards, it would be another landmark step in Governor Kazuo Ueda's efforts to normalise monetary policy in a country long accustomed to unconventional easing and near-zero rates. With stubbornly high food costs keeping inflation above its 2 per cent target for nearly four years, the BOJ is widely expected to ... (full story)