BOJ Raises Interest Rate to 1.25% Amidst Strong Economy
The Bank of Japan (BOJ) has decided to raise its policy interest rate by 0.25 percentage points to around 1.25%, marking the highest level in about 31 years. This decision was made at a two-day meeting of the BOJ's Policy Board, which ended on Friday. The last time the policy rate stood at 1.25% was back in April 1995.
The board voted seven to two to implement its first interest rate hike in three months, with the shortest interval between rate increases under BOJ Governor Kazuo Ueda, who assumed the post in 2023. This interval of about three months was last seen during the bubble economy era.
Two board members, Toichiro Asada and Ayano Sato, voted against the additional rate hike. Asada called for keeping the policy rate unchanged at around 1%, while Sato said that now is not the appropriate time to raise the rate.