Central Banks
Japan’s Central Bank Hikes Key Rate Hours Before the Fed
- Central bank pushes rates to 0.25%, highest since Dec. 2008
- Pace of bond-buying will be halved over a two-year period
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The Bank of Japan raised its benchmark interest rate and unveiled plans to halve bond purchases, underscoring its determination to normalize monetary policy.
The BOJ hiked its policy rate to around 0.25% from a range of 0 to 0.1%, according to a statement on Wednesday. It also said it would reduce its monthly pace of bond buying to around ¥3 trillion ($19.9 billion) by the first quarter of 2026. The recent pace of purchases has been about double that amount.