Bank of Japan Raises Benchmark Interest Rate to 1.25% in 3 Months, Highest in 31 Years

Japan's central bank, the Bank of Japan, raised its benchmark interest rate again in 3 months during a monetary policy meeting on the 18th.

According to Kyodo News and other sources, the Bank of Japan decided at its two-day monetary policy meeting ending today to raise the benchmark short-term policy rate by 0.25 percentage points, from around 1.0% to around 1.25%.

With this decision, Japan's benchmark interest rate has reached its highest level in 31 years since 1995.

This marks another policy rate hike just 3 months after the rate was raised from around 0.75% to around 1.0% last June.

This pace is the fastest since current Governor Kazuo Ueda took office.

Even before the announcement of the decision today, financial markets widely expected the Bank of Japan to raise policy rates at this meeting.

Observers noted that amid rising imported energy and food prices driven by higher crude oil prices and a weak yen, the Bank of Japan is remaining cautious against a sharper-than-expected inflation rise.
(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.