Bank of Japan raises interest rates to the highest level since 2008 – CNBC TV18

Bank of Japan on Friday extended its major policy rate to the highest level in 17 years, as Governor Kazuo Uda has continued its mission to return to the Central Bank Orthodoxy.

According to a statement by the Central Bank, Uda and their fellow board members increased the call rate of overnight by 0.5% from a fourth-quarter point at the end of the two-day meeting. The decision to increase was in line with market expectations. BOJ said that if its economic approach feels, then it will continue to increase the rates.

The step follows a report before Friday with consumer prices appear, except for a fresh food of 3%, is well above the inflation target of the central bank.

The Yen became briefly weakened after the decision before returning to the 155.94 mark against the dollar.

Uda was expected to increase the third rate in less than a year, when he and his deputy indicated that there was a step in a pipeline last week. This is the opposite with July when the increase in the previous rate of BOJ caught many investors from the guard and contributed to a global market recession and the biggest daily decline in Japan’s Nikkei 225 stock index.

The traders had almost completely changed a rate, while in about three quarters, economists predicted the move in a Bloomberg survey released last week. This makes the speed of further growth an important focus to this meeting.

The idea behind the UDA decision and the approach for inflation in a press briefing will be explained in detail which usually begins at 3:30 pm