TOKYO, Dec 19 (News On Japan) –
The Bank of Japan decided on December 19th to raise its policy interest rate to 0.75%, a move expected to have a significant impact on daily life through higher mortgage and deposit rates.
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The central bank lifted the policy rate from 0.5% to 0.75%, marking the highest level in about 30 years since 1995. One factor behind the decision is the weak yen and persistent price increases, but markets had largely priced in the rate hike, leaving the yen little changed at around 156 yen to the dollar.
Meanwhile, long-term interest rates, which serve as a benchmark for fixed-rate home loans, temporarily rose above 2%, reaching their highest level in roughly 26 years.
Market attention is now focused on a news conference being held by Governor Ueda Kazuo, with investors eager to hear a clear message on the pace of future rate hikes. Ueda said that given real interest rates remain at extremely low levels, the Bank of Japan will continue to raise the policy rate and adjust the degree of monetary easing in line with improvements in economic and price conditions.
As the briefing continues, the key question is whether Ueda will offer more specific guidance on how quickly the central bank intends to proceed with further interest rate increases.
Source: TBS
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: newsonjapan.com
