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Qatar National Bank reported that the Bank of Japan continues to tighten its monetary policy in the upcoming quarters due to persistent inflationary pressures and expectations of rising interest rates. The official interest rate increased to 1 percent in June 2026, the highest level since 1995, with forecasts suggesting it could reach around 1.5 percent in the medium term. The report attributed this shift to rising inflation rates, wage growth, and foreign exchange pressures, along with an increasing commitment to a gradual normalization policy, moving away from exceptional easing measures.
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