The Bank of Japan (BOJ) is expected to raise interest rates to 0.75% during its December 18–19 meeting, as the yen's depreciation fuels inflation concerns. Economists point to the yen's 10-month low against the U.S. dollar and its record low versus the euro as key factors driving imported inflation. All surveyed economists anticipate the policy rate to reach at least 0.75% by the end of Q1 2026. BOJ Governor Kazuo Ueda emphasized the significance of upcoming spring wage negotiations, which are projected to result in a 4.9% average pay increase, in influencing future monetary policy decisions.