Bank of Japan Expected to Raise Policy Rate to Highest Level in 31 Years
The Bank of Japan is widely anticipated to raise its benchmark interest rate by 25 basis points, with Governor Kazuo Ueda expected to proceed cautiously to avoid market volatility, according to Anadolu Agency.
The Bank of Japan (BoJ) is widely expected to raise its policy interest rate by 25 basis points from the current 1%, a move that would bring the rate to its highest level in 31 years, according to a report by Anadolu Agency.
Governor Kazuo Ueda is expected to remain cautious in his communication around the decision, the report said, citing an unnamed expert.
According to the expert cited in the report, signaling further consecutive rate hikes could fuel volatility in the Japanese yen and in bond markets, a risk the central bank is likely seeking to avoid as it adjusts monetary policy.
The anticipated increase would mark a continuation of the BoJ's gradual shift away from the ultra-loose monetary policy it has maintained for decades. Further details on the timing of the decision and the central bank's broader policy outlook were not specified in the available report.
Sources
- Bank of Japan gears to hike policy rate to highest level in 31 years — Anadolu Agency (Turkey)
EGazette summarizes reporting from multiple sources; follow the links for the originals.
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