Bank of Japan Lifts Rates to 1%, a 31-Year High as G10 Tightening Broadens
Updated
Updated · Reuters · Jun 18
Bank of Japan Lifts Rates to 1%, a 31-Year High as G10 Tightening Broadens
3 articles · Updated · Reuters · Jun 18
Summary
Japan’s 1% policy rate now stands as a landmark step in the BOJ’s normalization drive, with the central bank also signaling it is ready to tighten further if price pressures persist.
That move keeps the BOJ among four G10 central banks already in hiking mode even after a U.S.-Iran ceasefire eased oil prices and reduced some immediate energy-driven inflation risks.
The Federal Reserve held rates this week, but updated projections and Chair Kevin Warsh’s comments pushed markets to price in a possible hike within months, lifting short-term Treasury yields and the dollar.
Elsewhere on Thursday, the Bank of England, Swiss National Bank and Norges Bank held steady, though Britain and Norway still indicated rates could rise later this year.