The Bank of Japan (BOJ) has decided to raise its benchmark interest rate to 0.75%, marking the highest level in 30 years. This decision is driven by persistent inflation above the BOJ's 2% target and a desire to normalize monetary policy. The rate hike is expected to strengthen the yen and curb inflation, but may also impact Japan's fragile economy.
*Key Points:*
- _New Interest Rate_: 0.75%
- _Previous Rate_: 0.5%
- _Reason_: Persistent inflation and economic recovery
- _Impact_: Potential strengthening of the yen, increased borrowing costs
Governor Kazuo Ueda's post-meeting press conference will provide insights into future monetary policy. The BOJ is expected to continue gradual rate hikes, depending on economic conditions.
