Bank of Japan on Friday raised its benchmark rate to 0.75 — the highest since 1995 — as widely anticipated by the economists tracked by Bloomberg, in a sign of growing conviction that it can attain the stable inflation target it has pursued for more than a decade.
Governor Kazuo Ueda’s policy board increased the rate by a quarter percentage point to 0.75%, in a unanimous decision, according to its statement on Friday. The central bank cited the rising likelihood of its economic outlook being realized.
The rate change was expected by all 50 economists surveyed by Bloomberg.
The BOJ made it clear that the hiking cycle will continue by asserting that it intends to keep raising borrowing costs if its economic outlook is realised.Â
The yen weakened against the dollar, and was trading around 156 soon after the release of the statement, suggesting the rate hike was fully priced into markets.
