Bank of Japan Raises Rates to Highest Level in 31 Years as Two Board Members Dissent
The Bank of Japan raised interest rates to a 31-year high on Friday and said it is willing to keep pushing up borrowing costs, joining other major central banks in the fight against persistent inflation driven by higher oil prices, according to Reuters. At its two-day meeting, the BOJ increased its policy rate to 1.25% from 1%, with a vote of 7 to 2, and more moderate board members Toichiro Asada and Ayano Sato voted against. But the widely expected move failed to support the yen, which fell to 156.91 per dollar, as investors focused on the lack of explicitly firm guidance and on the two dissenters who argued for patience.
The Bank of Japan raised interest rates to a 31-year high on Friday and said it is willing to keep pushing up borrowing costs, joining other major central banks in the fight against persistent inflation driven by higher oil prices, according to Reuters. At its two-day meeting, the BOJ increased its policy rate to 1.25% from 1%, with a vote of 7 to 2, and more moderate board members Toichiro Asada and Ayano Sato voted against. But the widely expected move failed to support the yen, which fell to 156.91 per dollar, as investors focused on the lack of explicitly firm guidance and on the two dissenters who argued for patience.
