Bank of Japan Raises Interest Rates; Highest in 17 Years

The Bank of Japan today increased the interest rate to their highest levels since the 2008 global financial crisis. The decision comes following the inauguration of U.S. President Donald Trump, who is likely to keep global policymakers on alert amid potential efforts to impose higher tariffs.

24 Jan 2025 4:48 PM IST

The Bank of Japan today increased the interest rate to their highest levels since the 2008 global financial crisis. The decision comes following the inauguration of U.S. President Donald Trump, who is likely to keep global policymakers on alert amid potential efforts to impose higher tariffs.

BOJ Governor Kazuo Ueda said that the central bank will raise the interest rates, while adding that there was a scope to increase the borrowing costs before they are considered neutral for the economy.

He said in a press conference, “We don't have any preset idea. We'll make a decision at each policy meeting by looking at economic and price developments as well as risks.”

During the two-day meeting concluding on Friday, BOJ raised its short-term policy rate from 0.25% to 0.5%, the highest in 17 years. The decision was made with a 8-1 vote where one board member Toyoaki Nakamura dissented.

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