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BOJ raises interest rates to 31-year high in widely expected move
- 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.
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46 Articles
46 Articles
Bank of Japan Raises Key Rate to 1.25 Pc, Warns Inflation Could Exceed 2 Pc Target
Get latest articles and stories on Business at LatestLY. The Bank of Japan (BOJ) raised its key interest rate by 25 basis points to 1.25 per cent from 1.0 per cent earlier, while warning that underlying inflation could exceed its 2 per cent target amid rising wage and price expectations. Business News | Bank of Japan Raises Key Rate to 1.25 Pc, Warns Inflation Could Exceed 2 Pc Target.
·Mumbai, India
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The increase, widely expected, of 25 basis points was decided by majority with two of the nine members of the board in dissent
·Milan, Italy
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Coverage Details
Total News Sources46
Leaning Left9Leaning Right9Center13Last UpdatedBias Distribution42% Center
Bias Distribution
- 42% of the sources are Center
42% Center
L 29%
C 42%
R 29%
Factuality
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