The Bank of Japan is expected to raise its policy interest rate from the current 0.75% to 1% in July, with further increases potentially reaching 1.5% by 2027, according to Harumi Taguchi, an economist at S&P Global Market Intelligence. This forecast comes amid concerns over rising oil prices and a weakening yen, which could exacerbate inflation pressures. The anticipated rate hikes reflect the central bank's strategy to address these economic challenges.