Japan’s central bank raised its benchmark interest rate to the highest level in more than three decades on June 16, citing broadening inflation pressures and rising energy costs.
The Bank of Japan (BOJ) voted 7–1 to raise its policy rate to around 1 percent from 0.75 percent, marking the highest benchmark interest rate since 1995. The new rate takes effect on June 17.
The decision comes as policymakers assess the economic fallout from months of conflict in the Middle East, which has disrupted energy supplies and pushed up oil prices worldwide.
“Japan’s economy has recovered moderately, although some weakness has been seen in part, partly due to the impact of the situation in the Middle East,” the central bank said in its June 16 policy statement….
Bank of Japan Raises Interest Rates to Highest Level Since 1995
