Bank of Japan Raises Interest Rates Amid Economic Stability Targets
The Bank of Japan raised its policy interest rate to 1.25 percent to support sustainable price stability as economic activity remains on track.
By Orion Desk
The Bank of Japan decided by a 7-2 majority to increase the uncollateralized overnight call rate to approximately 1.25 percent. Policymakers noted that economic and price developments are currently moving in line with their baseline scenario, with underlying inflation approaching the target of 2 percent.
This adjustment impacts borrowing costs for financial institutions, as the complementary deposit facility rate was also lifted to 1.25 percent and the basic loan rate to 1.5 percent. Traders monitoring JPY pairs and the Nikkei 225 should note the board's intent to continue adjusting monetary policy based on ongoing assessments of economic growth and inflation risks.
Originally published by Bank of Japan
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