Bank of Japan Raises Interest Rates to Highest Level in 31 Years

SadaNews - The Bank of Japan has raised its benchmark interest rate to the highest level since 1995, indicating that further normalization of monetary policy is still on the table during a monetary policy meeting held in the absence of the governor.

The Bank of Japan raised the benchmark interest rate by a quarter of a percentage point to 1%, according to a statement issued on Tuesday. It also announced that it would keep its bond purchases stable at a monthly pace of about 2 trillion yen starting from April 2027, signaling an end to the reduction of the bond-buying program.

These decisions were widely anticipated by economists and market participants. The vote on the rate hike was passed by a majority of 7 votes to 1, with opposition from board member Toyoichiro Asanda.