BOJ Signals Willingness to Raise Rates Despite Middle East Uncertainty

Bank of Japan Governor Kazuo Ueda said December 3 the central bank could raise rates even amid uncertain Middle East conditions if upside inflation risks outweigh downside economic risks. This marks a notable recalibration: the BOJ is prioritizing domestic price pressures over external volatility. A rate decision comes December 15–16; any increase would be the first since December 2025. The shift suggests Japan's recovery has strengthened enough to tolerate geopolitical shocks.