Japan's producer prices are still running at 7.6%. This is the bill for 20 years of money printing.
The BOJ held rates at zero, ran QE, and pinned bond yields longer than any central bank alive. The yen collapsed. Everything Japan imports now costs a fortune in yen.
That is… pic.twitter.com/dUyjKCvhU4
— Kurt S. Altrichter, CRPS® (@kurtsaltrichter) September 11, 2026
BOJ set to raise rates to 1.25%, a 31-year high
The BOJ is now expected to hike 25 basis points next week. Analysts are already looking toward 1.75% by mid-2027, meaning the yen problem is forcing Japan toward a much different rate environment.
Japan’s wholesale inflation stays at 7.6% as import prices jump 24.8%
This is the fresh evidence behind the BOJ move. PPI stayed at 7.6%, while yen-based import prices jumped 24.8% year over year. The weak currency is still feeding directly into Japan’s import bill.
U.S. pressure on Japan is now creating a BOJ credibility problem
https://www.ft.com/content/f7ca7904-b0d8-428b-9bf7-8837407922
Former BOJ officials are warning that Bessent’s involvement could make the central bank look politically pressured by Washington. That’s a much bigger issue than simply whether Japan hikes 25bp.