The Bank of Japan is expected to raise interest rates on Friday barring any market shocks when U.S. President-elect Donald Trump takes office, a move that would lift short-term borrowing costs to levels unseen since the 2008 global financial crisis.

Andrew Jackson, head of Japanese equity strategy at Ortus Advisors, discusses the Bank of Japan's upcoming interest rate decision.

Bank of Japan Governor Kazuo Ueda will size up the need to raise interest rates on Friday amid heightened expectations of a hike — and barring a market shock triggered by Donald Trump’s first few days in the White House.

Markets have also focused on a speech by Ueda’s deputy last week that was widely interpreted as suggesting that conditions would now justify an increase. The yield on the benchmark 10-year Japanese government bond rose to 1.25 per cent — the highest since April 2011 — in the wake of his comments.

The Bank of Japan looks set to raise interest rates this week unless Trump’s inauguration address as U.S. president on Monday rattles financial markets, say people familiar with the central bank’s thinking.

Japan's core machinery orders rose 3.4% in November from the previous month to beat analysts' forecast, government data showed on Monday, signalling a recovery in capital expenditure ahead of a central bank interest rate review later this week.

The Bank of Japan is expected to raise its short-term interest rate to 0.5% this Friday, barring significant market disruptions as U.S. President-elect Donald Trump takes office. This move would mark the first

Bank of Japan Deputy Governor Ryozo Himino has signaled that an interest rate hike may be on the cards at the monetary policy meeting on January 23-24, as many of the shocks to the Japanese economy and deflationary factors have been resolved.

More than 95% of people in Japan feel prices have increased over the past year, a survey by the Bank of Japan has shown. The share of respondents who felt higher prices compared with a year before rose to 95.1% in the latest December survey released Friday, from 94.7% in September.

Japan's annual wholesale inflation held steady at 3.8 per cent in December on stubbornly high food costs, data showed on Thursday, highlighting persistent price pressures that may prod the central bank to raise interest rates next week.

The dollar drifted lower and stocks were cautiously positive on Monday, January 20, as investors awaited an expected flurry of policy announcements during the first hours of Donald Trump’s second presidency and eyed a rate hike in Japan at the end of the week.

Regional gains, however, remained capped due to a holiday in the U.S. and amid caution ahead of U.S. President-elect Donald Trump's inauguration later in the day.