The Bank of Japan raised its policy rate to 1%, lifting rates to a level aimed at curbing inflation for the first time in 31 years. The decision was made at a Monetary Policy Meeting, and attention is focused on the future direction of interest rates.
The Bank of Japan decided at a Monetary Policy Meeting to raise its policy rate to 1%. The rate hike is intended to curb inflation and is also expected to affect the direction of long-term interest rates.
The new rate is the highest level in 31 years and could mark a turning point away from the low-interest-rate environment that has prevailed to date. Views have emerged that it will also affect funding costs for markets and companies.