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Bank of Japan signals more rate rises as Takaichi dissolves parliament for snap poll

Japan will hold shortest-ever general election campaign period before voting next month

The Bank of Japan signalled on Friday that it was likely to continue raising interest rates in 2026, as investors grapple with some of the most extreme government bond market moves in years.

The BoJ ended its two-day monetary policy meeting with a decision to keep interest rates steady at around 0.75 per cent, a decision widely expected by economists against the backdrop of a snap general election called by Prime Minister Sanae Takaichi.

Japan’s parliament was officially dissolved on Friday, opening what will be the country’s shortest-ever general election campaign period ahead of voting on February 8.

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