BOJ raises interest rates to 31-year high in widely expected move
The 7-2 vote was the first hike in three months and brought rates to their highest level since 1995.
- On Friday, the Bank of Japan raised its policy rate to 1.25%, a 31-year high, in a 7-2 vote aimed at forestalling risks of inflation overshooting its 2% target.
- Mounting inflationary pressures and a historically weak yen prompted the decision, as the central bank sought to move away from decades of ultra-low rates that had defined the Japanese economy.
- Board members Toichiro Asada and Ayano Sato dissented from the hike, while U.S. Treasury Secretary Scott Bessent urged the administration to take "decisive" monetary steps to combat yen weakness.
- BOJ Governor Kazuo Ueda is scheduled to hold a news conference at 3:30 p.m. to explain the decision, with investors seeking signals on the pace of future rate hikes.
- Analysts expect the central bank to hike rates to 1.5% by end-March next year and then to 1.75% in the second quarter of 2027, as policymakers balance inflation containment against growth risks.
72 Articles
72 Articles
Bank of Japan ups rates to 31-year high
The Bank of Japan raised interest rates to a 31-year high on Friday and signalled its readiness to keep pushing up borrowing costs, joining other major central banks in fighting persistent inflation pressures driven by soaring oil costs. The widely expected move, which was the first hike in three months, takes interest rates closer to levels the central bank deems neutral to the economy, marking another step away from decades of ultra-low rates …
The Japanese central bank raised the policy interest rate on Friday from 1.0 percent to 1.25 percent, the highest level in 31 years. The decision, taken...
Bank of Japan raises policy rate to 1.25%, a 31-year high
The new rate is the highest in Japan since 1995 and takes effect on September 24. It also marks the shortest gap between increases since the central bank ended its negative interest rate policy and other large-scale easing measures in March 2024.
My Mother Lode
The Seattle TimesJapan’s central bank raises benchmark interest rate to 1.25%
TOKYO (AP) — Japan’s central bank on Friday raised the benchmark interest rate to 1.25% from 1.0%, a 31-year-high. The Bank of Japan has been trying to normalize monetary policy after decades of keeping interest rates near or below zero to try to encourage more borrowing and spending to counter deflation and pull Japan’s economy...
The Bank of Japan (BOJ) announced it was raising its policy interest rate to 1.25%, the highest level since 1995, amid pressure from the energy crisis and a weakening yen.
Coverage Details
Bias Distribution
- 37% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
