BOJ decision live: Japan's policy interest rate set to rise to 31-year high

Live updates

1. 1h ago

   Bank of Japan raises interest rates to 31-year high

   The Bank of Japan increased its policy interest rate from 1% to 1.25% to combat the effects of rising prices. This move brings the rate to its highest level in 31 years. The decision follows a trend of monetary tightening by the European Central Bank and the US Federal Reserve. While Japan experienced a slight slowdown in inflation just before the decision, the bank proceeded with the hike to curb the impact of price increases.

   Why it matters

   Japan is shifting away from long-term easy-money policies designed by previous architects of its monetary system. The bank faces simultaneous pressure from domestic inflation and economic conditions in the United States.

   What is confirmed

   • The Bank of Japan raised interest rates to a 31-year high.
   • The policy interest rate increased from 1% to 1.25%.

   Still unconfirmed

   • Japan's inflation slowed slightly before the rate hike.

   What to watch next

   • Future rate adjustment decisions by the Bank of Japan
   • Changes in inflation data following the rate hike
   Sources used for this update (6)

   1. CNBC — BOJ expected to hike rates by 25 basis points to fresh three-decade high: CNBC survey
   2. The New York Times — Architects of Japan’s Easy-Money Policies Are Changing Their Minds
   3. Reuters — BOJ decision live: Japan's policy interest rate set to rise to 31-year high
   4. Japan Today — Bank of Japan set to raise rates under pressure from inflation, U.S.
   5. Bloomberg.com — Japan Inflation Slows a Tad Ahead of Expected BOJ Rate Hike
   6. www.theguardian.com — Japan raises interest rates to 31-year high to curb impact of rising prices
   confidence 90%