BOJ rate hike signals faster pace of tightening amid inflation risks, weak yen: Economists
- The Bank of Japan’s latest interest rate hike remains part of a gradual normalisation of monetary policy, but economists say inflation risks and a weak yen could push policymakers to tighten more quickly in the months ahead.
- The central bank raised rates on Friday (Sep 18) by 25 basis points to a 31-year high of 1.25 per cent.
- The widely expected move, coming three months after its previous hike, takes borrowing costs closer to levels the BOJ considers neutral for the economy and marks another step away from decades of ultra-low interest rates.
Unverified
- The Bank of Japan’s latest interest rate hike remains part of a gradual normalisation of monetary policy, but economists say inflation risks and a weak yen could push policymakers to tighten more quickly in the months ahead.
- The central bank raised rates on Friday (Sep 18) by 25 basis points to a 31-year high of 1.25 per cent.
- The widely expected move, coming three months after its previous hike, takes borrowing costs closer to levels the BOJ considers neutral for the economy and marks another step away from decades of ultra-low interest rates.
Sources: CNA