Published • loading... • Updated
BOJ raises interest rates to 31-year high in widely expected move
- On Friday, the Bank of Japan raised its policy interest rate to 1.25%, a 31-year high, to counter inflation risks from a weak yen and rising oil prices.
- Following the Federal Reserve's Wednesday rate hike, U.S. Treasury Secretary Scott Bessent urged BOJ Governor Kazuo Ueda to take "decisive" monetary steps to combat yen weakness.
- Even with this increase, the BOJ lags global peers with rates lower than the European Central Bank's 2.5% and the Federal Reserve's 3.75%-4.00% range, while reaching Japan's estimated 1.1%-2.5% neutral rate.
- BOJ Governor Kazuo Ueda faces heightened scrutiny at his news conference, as officials remain vague on future tightening speed, citing dependence on inflation outlooks and financial conditions.
- Analysts polled by Reuters expect the BOJ to reach 1.5% by March next year and 1.75% by the second quarter of 2027, with two more policy meetings scheduled for October and December.
Insights by Ground AI
31 Articles
31 Articles
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
Read Full Article
The Bank of Japan (BoJ) raises the reference rate by one quarter of a point to 1.25%, bringing the cost of money to the highest levels since April 1995, to counter the increasing inflationary risks associated with oil price increases and low... (ANSA)
·Rome, Italy
Read Full Article
Coverage Details
Total News Sources31
Leaning Left3Leaning Right7Center12Last UpdatedBias Distribution54% Center
Bias Distribution
- 54% of the sources are Center
54% Center
14%
C 54%
R 32%
Factuality
To view factuality data please Upgrade to Premium
