Bank of Japan Raises Rate to 1 Percent in 7-1 Vote, Highest Since 1995
The central bank lifted its benchmark rate by 25 basis points on Tuesday in a 7-1 vote. It also said it will continue reducing government-bond purchases through April 2027.
Financial TimesThe Bank of Japan raised its benchmark policy interest rate to 1 percent on Tuesday, the highest level since 1995. The decision passed by a 7-1 vote. Board member Toichiro Asada opposed the increase and called for rates to remain unchanged.
The Bank of Japan said it will continue trimming government-bond purchases by 200 billion yen each quarter until April 2027, after which monthly purchases will stabilize at 2 trillion yen. Consumer inflation reached 3 percent in May, the fastest pace in more than three years, driven mainly by higher energy costs.
4 percent in April to government subsidies that offset higher household energy bills.
The central bank noted that higher crude-oil costs are passing through more quickly in business-to-business transactions. 3 percent in May. The Japanese government enacted a 3 trillion yen supplementary budget to cushion households from rising energy prices.
U.S. dollar. 615 percent.
