Bank of Japan Expected to Raise Interest Rates by Most in 18 Years

The Bank of Japan is widely expected to raise its benchmark rate Friday by the most in 18 years, in a show of boosted confidence over the sustainability of inflation as it progresses down its normalization path.

Governor Kazuo Ueda and his board will likely decide to increase the overnight call rate to 0.5% at the conclusion of their two-day meeting. The 25 basis point increase would be the largest since February 2007, adding to signs that the economy is finally getting back to normal.