Charting the Global Economy: Bank of Japan Raises Interest Rates

The Bank of Japan raised its key policy rate to the highest level since 2008 and took a more bullish view on the strength of inflation.

The rate hike followed a report showing consumer prices excluding fresh food rising at a faster pace of 3%, well above the central bank’s inflation target. In its outlook report, the BOJ raised most of its inflation projections, with all six of them currently at 2% or more for the first time since it started publishing them.