MNI BRIEF: BOJ Lifts Rate To 0.50%; Highest Since Oct 2008
MNI (TOKYO) - The Bank of Japan raised the unsecured overnight call loan rate 25 basis points to 0.50% on Friday, the first hike since July 2024 and the highest level since October 2008.
“Japan’s economic activity and prices have been developing generally in line with the outlook presented in the previous Outlook Report released in October,” according to a statement released by the BOJ.
“The bank judged it is appropriate to adjust the degree of monetary accommodation from the perspective of sustainable and stable achievement of the price stability targe of 2%. Real interest rates are expected to remain significantly negative after the change of the policy interest rate, and accommodative financial conditions will continue to firmly support economic activity,” it said.
Board member Toyoaki Nakamura was the sole dissenter.
The BOJ said it will conduct appropriate monetary policy in response to developments in economic activity and prices as well financial conditions, from the perspective of sustainable and stable achievement of the target.
Today's move was largely expected. (See MNI BOJ WATCH: Board To Discuss Hike, Shift Outlook)