BOJ raises interest rates to 31-year high in widely expected move
TOKYO—The Bank of Japan raised interest rates to a 31-year high of 1.25 percent on Friday in a widely expected move to forestall risks of inflation overshooting its 2 percent inflation target. At a two-day policy meeting that ended on Friday, the board decided by a 7-2 vote to raise its policy rate from 1 percent. Board member Toichiro Asada and Ayano Sato dissented to the decision. BOJ Governor…
The Bank of Japan raised interest rates to 1.25 percent, a 31-year high, in a widely expected move. According to The Korea Times, the decision was made with a 7-2 vote at a two-day policy meeting that ended on Friday. Board members Toichiro Asada and Ayano Sato dissented to the decision.
The rate hike aims to prevent inflation from exceeding the 2 percent target. As reported by Investing.com, Hirofumi Suzuki, Chief FX Strategist at SMBC in Tokyo, noted that the rate hike was expected, but the two dissenting votes were a modest surprise. The outcome tempered expectations for further rate hikes, conveying a dovish impression.
The yen initially weakened following the decision, and attention turned to Governor Ueda's inflation outlook and policy stance at the press conference. According to FXStreet, the USD/JPY pair surged to near 156.95 after the Bank of Japan's monetary policy decision. Investors awaited Governor Ueda's press conference for fresh cues on the central bank's monetary tightening path.
Brief written by urgent.news from The Korea Times, The Korea Times, Investing.com, FXStreet — 4 reports on this story. Machine-written — may contain errors; check the original before relying on it.
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- BOJ Raises Interest Rates to 31-Year High in Widely Expected Move (Update 1) japannews.yomiuri.co.jp
- BOJ raises interest rates to 31-year high in widely expected move brecorder.com
- BOJ raises interest rates to 31-year high in widely expected move koreatimes.co.kr
