Bank of Japan Expected to Raise Policy Rate to 1.25 Percent
· Business · Nikkei Asia, asia.nikkei
The Bank of Japan is reportedly set to raise its benchmark policy rate to 1.25% during its upcoming monetary policy meeting next week. The anticipated rate hike marks another step by the central bank in normalizing its monetary stance away from decades of ultra-loose policy. Policymakers are responding to persistent wage growth and inflation trends aligning with economic forecasts. Financial markets have been adjusting positions in anticipation of higher borrowing costs in Japan. The decision will influence currency valuations and bond yields across international financial markets.
Why it matters
An interest rate hike by the Bank of Japan affects global currency markets, bond yields, and borrowing costs for international investors.
Read the original report — Nikkei Asia
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