BOJ raises rates 0.25% to 1.25%, highest in 31 years, signals further hikes

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โดย InfoQuest·JP·Read original
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The Bank of Japan, or BOJ, raised its policy interest rate by 0.25% to 1.25%, the highest level in 31 years, at its meeting on September 18, while signalling that it will continue raising interest rates and adjusting the degree of monetary easing, amid concern that inflation may rise above the BOJ's 2% target. The decision was not unanimous, as two of the nine board members, Toichiro Asada and Ayano Sato, voted against it. Both hold a stance favouring monetary easing and were appointed by Prime Minister Sanae Takaichi earlier this year. The BOJ stated that the rate hike was driven by the risk that inflation may rise above the 2% target and by the desire to keep underlying inflation stable at around 2%. It also announced it will monitor movements in foreign exchange markets and global demand related to artificial intelligence, or AI, in order to set the direction of future monetary policy. The rate hike comes after the US Federal Reserve, or Fed, raised interest rates by 0.25% to a range of 3.75-4.00% at its meeting on Wednesday, September 16, its first rate hike in three years, and signalled further increases this year. Meanwhile, the European Central Bank, or ECB, raised its policy rate by 0.25% at its meeting on September 10, its second rate hike this year, amid concerns about inflation. This marks the first time that the BOJ, the Fed and the ECB have all decided to raise interest rates in the same month.

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ECB rates
ECBRATES
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ECB raised its policy rate 0.25% this year's second hike, lifting the ECB policy rate/yield.