Market News
Bank of Japan raises interest rates to highest in 17 years, yen jumps - REUTERS
By Leika Kihara and Makiko Yamazaki
Summary
- BOJ raises short-term policy rate 25 bps to 0.5% from 0.25>#/li###
- Board raises price forecasts, flags brightening wage outlook
- BOJ sees price risks skewed to upside, says markets stable
- Ueda says rates still below neutral, signals more hikes
- U.S. growth solid, markets stable but Trump risk looms
TOKYO, Jan 24 (Reuters) - The Bank of Japan raised interest rates on Friday to their highest since the 2008 global financial crisis and revised up its inflation forecasts, underscoring its confidence that rising wages will keep inflation stable around its 2% target.
The decision marks the BOJ's first rate hike since July last year and comes days after the inauguration of U.S. President Donald Trump, who is likely to keep global policymakers vigilant ahead of potential repercussions from threatened higher tariffs.
