BOJ raises key interest rate - NHKニュース

BOJ raises key interest rate The Bank of Japan has decided to raise its key interest rate by a quarter percentage point to around 1.25 percent. That's the highest level in about 31 years.

The central bank announced the increase on Friday as it wrapped up its two-day monetary policy meeting.It's the first increase in three months and marks an accelerating pace for rate hikes. The BOJ had been raising rates roughly every six months.This rate hike was expected as the bank had signaled it would deal with the risk of sharp price increases.

Bank of Japan Governor Ueda Kazuo spoke at a news conference on Friday after the central bank raised its key interest rate.He said the bank's policy stance has entered a new phase, because the underlying inflation rate had previously been viewed as below 2%. Regarding the BOJ's outlook, Ueda said: "Given that financial conditions remain accommodative, the bank will continue to raise the rate and adjust the degree of monetary easing in response to developments in economic activity, prices and financial conditions."The governor did not mention the specific timing for future rate hikes.

Investors in Tokyo bought stocks and sold the yen on Friday after the BOJ raised its benchmark interest rate.The Nikkei 225 stock index gained 2 percent at one stage. The benchmark finished nearly 1.4 percent higher at 65,018, extending its winning streak to three days.Analysts say investors were encouraged to see the BOJ's decision was in line with expectations.However, the yen weakened against the dollar to the mid-157 level at one point.