BOJ lifts key policy rate to 1.25% amid growing inflation risks
TOKYO (Kyodo) -- The Bank of Japan raised its key interest rate to 1.25 percent from around 1.0 percent on Friday, accelerating monetary tightening as
The Bank of Japan has raised its key interest rate to 1.25 percent from around 1.0 percent. According to FXStreet, this decision was made by a 7-2 vote, with board members Toichiro Asada and Ayano Sato dissenting from the decision.
The central bank cited growing inflation risks, stating that it must be vigilant to risks, particularly Middle East developments, AI demand, FX volatility, and their impact on the economy and prices. The Bank of Japan also noted that there is a risk that underlying inflation could overshoot its 2 percent target.
The Japanese Yen initially fell in reaction to the rate decision, with some finding it not hawkish enough. The Bank of Japan Governor Kazuo Ueda's remarks were expected to be closely monitored for clues on potential future rate hikes.
Brief written by urgent.news from The Mainichi, FXStreet — 2 reports on this story. Machine-written — may contain errors; check the original before relying on it.
