TOKYO, Jan 24 (News On Japan) –
The Bank of Japan (BOJ) has determined to boost its coverage rate of interest from an annualized 0.25 p.c to 0.5 p.c. This marks the primary charge hike in six months and seems geared toward correcting the traditionally weak yen.
Following the choice, the yen appreciated by roughly one yen in opposition to the dollar, with the USD/JPY pair now buying and selling within the 155.20 vary.
The coverage charge enhance to 0.5 p.c was authorised by a vote of eight to 1 amongst BOJ policymakers and represents the best stage since October 2008.
In its “Outlook Report,” launched alongside the choice, the BOJ highlighted the depreciation of the yen and rising rice costs as components pushing inflation greater. The inflation forecast was revised upward in comparison with three months in the past, with projections raised by 0.2 p.c for the present fiscal 12 months and by 0.5 p.c for the following fiscal 12 months.
The charge hike can be seen as a part of efforts to deal with the yen’s traditionally low ranges.
This afternoon, consideration will flip to BOJ Governor Kazuo Ueda’s press convention, the place he’s anticipated to supply his financial outlook and probably sign whether or not additional charge hikes are on the horizon.
Source: TBS