{"id":"f-993d06a2ab-0510e0b4-ec2c-58ce-b2b1-6c39db48da18","title":"Bank of Japan hikes overnight rate 25 bps to 0.75%, highest since 1995","description":"Bank of Japan Interest Rate Decision: Bank of Japan has raised the benchmark interest rates by 25 bps to 0.75 per cent. The latest decision takes the rates to the levels unseen since 1995.","timestamp":1766129726,"category":"business","headline":"Bank of Japan hikes overnight rate 25 bps to 0.75%, highest since 1995","modifiedHeadline":"Japan Raises Interest Rate to Highest Since 1995","subCategories":["scid_edbc7f13"],"region":"IN","bundleMetaData":{"bundleId":"c80449a0-0ad6-472b-8d17-5747dd8f5c83","bundleTitle":"Around the globe","cardData":null},"iabCategoryId":"88","fcSummary":"The bank of japan raised short-term interest rates to 0.75 percent, a 25 bps increase, marking the first hike since 1995. This decision reflects confidence in achieving a 2% inflation target with wage gains, signaling continued monetary policy normalization.","summary":"BOJ hikes rates to 0.75%, a level unseen since '95, signaling a major shift. Will this tame inflation or trigger economic tremors?","ctaUrl":"https://trends.glance.com/newz/Economy/IN/en/et-now/f-993d06a2ab-0510e0b4-ec2c-58ce-b2b1-6c39db48da18","sourceUrl":"https://www.etnownews.com/economy/bank-of-japan-interest-rate-hikes-overnight-rate-25-bps-to-0-75-highest-since-1995-article-153315241","bannerImage":"https://g-mob.glance-cdn.com/public/fc/image/yrajGRSaTMw0.webp","content":"

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Bank of Japan Interest Rate Decision: The Bank of Japan on Friday (December 19) hiked the interest rates to a three-decade high. As widely expected, BOJ

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raised the short-term interest rates to 0.75 per cent, up by 25 bps from 0.5 per cent. The move underscored the central bank's conviction that Japan was on course to stably hit its 2 per cent inflation target backed by wage gains, and ready for a continued normalisation of monetary policy, said a Reuters report. \"Real interest rates are expected to remain significantly negative after the policy change, and accommodative financial conditions will continue to firmly support economic activity,\" the BOJ said in a statement announcing the decision. The decision to hike the benchmark rate was announced after a two-day meeting of the central bank concluded today. This also marks the first increase since January.

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\nThe latest hike take rates to levels unseen since 1995, when Japan was reeling from the burst of an asset-inflated bubble that drew the BOJ into a prolonged battle with deflation.\n
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BoJ: 'Will Continue To Hike Rates'

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\nThe statement by Bank of Japan said that it will continue to hike the interest rates in the near future. \"Given that real interest rates are at significantly low levels, the BOJ will continue to raise interest rates and adjust the degree of monetary accommodation\" if its economic and price forecasts materialise, the central bank said in the statement.\n
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\nA Reuters poll had earlier showed 90 per cent of economists expect the BOJ to hike rates to 0.75 per cent in December and slightly over two-thirds saw rates reaching at least 1 per cent by September next year.\n
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\nThe BOJ's decision comes a day after the European Central Bank kept policy steady and signaled an end to its rate-cut cycle.\n
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Japan Inflation Rate

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\nBank of Japan ended a decade-long, massive stimulus last year and raised rates twice including to 0.5 per cent from 0.25 per cent in January on the view Japan was on the cusp of durably achieving its 2 per cent inflation target. Data released on Friday showed core consumer inflation hit 3 per cent in November, steady from the previous month and well exceeding the BOJ's target.\n
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\nMeanwhile, the Nikkei 225 index, which tracks to movements of Japan's top 225 companies, traded 645 points or 1.32 per cent higher at 49,622 after the session resumed after the lunch break.\n

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Bank of Japan hikes overnight rate 25 bps to 0.75%, highest since 1995

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