Japan’s central bank raised its benchmark interest rate to the highest level in three decades, taking another step away from its long-standing ultra-loose monetary policy as officials seek to rein in persistent inflation pressures driven by rising wages and prices.
At a two-day monetary policy meeting on Dec. 18–19, the Bank of Japan (BOJ) voted unanimously to raise its short-term policy rate by 25 basis points, bringing it to around 0.75 percent. The move lifts borrowing costs to their highest level since September 1995.
The decision raises mortgage and other loan costs while boosting returns on savings, marking a further departure from decades of near-zero or negative interest rates aimed at jump-starting growth in an economy battling weak demand and deflationary pressures….
Bank of Japan Raises Interest Rates to Highest in 30 Years
