BOJ raises interest rates to 31-year high in widely expected move
The move was widely expected as inflation stayed near 2% and the yen remained weak, with two board members dissenting.
- On Friday, the Bank of Japan is set to raise its policy rate to 1.25% from 1%, reaching a 31-year high as the central bank joins global peers in fighting persistent inflation pressures driven by soaring oil costs.
- Japan's headline inflation reached 1.9% in July, fueled by increased energy costs from the Iran war. The BOJ aims to move rates toward a neutral level of 1.1% to 2.5%, ending decades of ultra-low borrowing costs.
- Around 89% of analysts surveyed by CNBC expect a 25-basis-point increase, citing higher inflation, higher wages, and pressure from Treasury Secretary Scott Bessent, who urged BOJ Governor Kazuo Ueda to take "decisive market and monetary steps."
- Facing a significant communication challenge, BOJ Governor Ueda must address his post-meeting briefing as markets remain divided on whether hawkish signals will strengthen the yen or upend bond markets already seeing a sell-off.
- Analysts project the BOJ will reach 1.5% by end-March next year and 1.75% in the second quarter of 2027, positioning the central bank to balance inflationary risks while avoiding overheating growth.
260 Articles
260 Articles
The Japanese Central Bank has raised the key rate to the highest level in more than 30 years. However, compared with other major economies, the rate remains low – and still carries enormous risks.
The Bank of Japan’s Damp Squib
So much for US Treasury Secretary Scott Bessent’s claim that he had asymmetric information about the Bank of Japan’s (BOJ) interest rate policy intentions. So much, too, for his warning to currency traders not to bet against the Japanese yen, claiming that he was now the house. Yesterday, at its interest rate meeting, far from surprising markets with a more aggressive monetary policy stance, the BOJ confirmed the market’s view that it is a cent…
The Bank of Japan (BoJ) raised its key interest rate by a quarter of a percentage point to 1.25 percent on Friday, taking rates to their highest since 1995. The bank continues to gradually end the era of extremely cheap money that has lasted in the country for several decades.
BOJ raises rates in split decision amid US pressure
The Bank of Japan (BOJ) raised its benchmark interest rate in a split decision showing dissent within the board as it confronts mounting inflation risks and unusually explicit calls for further policy normalization from Washington.The BOJ lifted its policy rate by a quarter point to 1.25 percent yes
The Japanese central bank has raised its key rate to the highest level in 31 years.
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