BoJ to Hike Rates to 30-Year High Amid Bond Market Jitters

• Bank of Japan expected to raise interest rates to a 30-year high.
• The hike aims to curb inflation, which is above the 2% target (3.0% in October).
• Japanese bond yields have risen due to concerns over PM Takaichi's budget discipline and increased government borrowing.
• The yen has weakened, contributing to inflation due to Japan's reliance on imports.
• Economists predict a rate increase from 0.5% to 0.75%, the highest since 1995.

Why It Matters: Japan's historic rate hike impacts its economy, inflation, and financial stability.