Friday, July 4, 2025
  • Login
Bullnews - Your Daily Source for Financial Insights, Stock Market Trends & Investment News
Advertisement
  • Home
  • USA
  • World
  • Investing
  • Alternative Investing
  • Personal Finance
  • Opinion
  • Retirement
  • ETFs
  • FX
  • Crypto
No Result
View All Result
  • Home
  • USA
  • World
  • Investing
  • Alternative Investing
  • Personal Finance
  • Opinion
  • Retirement
  • ETFs
  • FX
  • Crypto
Bullnews - Your Daily Source for Financial Insights, Stock Market Trends & Investment News
No Result
View All Result
Home FX

Bank of Japan Raises Interest Rates by 0.25% Following 8-1 Decision

by bullnews
January 24, 2025
in FX
Reading Time: 2 mins read
0 0
0
Bank of Japan Raises Interest Rates by 0.25% Following 8-1 Decision
0
SHARES
8
VIEWS
Share on FacebookShare on Twitter

On Friday, the Bank of Japan (BOJ) made headlines by raising its key policy interest rate by 25 basis points, setting it at 0.5%. This marks its first rate increase since 2008 and signifies a step towards normalizing monetary policy, prompted by improving economic conditions domestically.

Key Points to Note:

  • The decision to raise rates was mostly supported, passing with an 8-1 vote, though board member Toyoaki Nakamura had reservations.
  • The policy rate is now the highest it has been since 2008.
  • The BOJ has hinted at the possibility of gradual rate increases extending through 2025.
  • Wage negotiations will be a critical factor for future policy adjustments.

This move comes on the back of extensive interventions in the currency markets over the past year. Japanese authorities have spent upwards of 15.32 trillion yen to bolster the currency. With the yen recently showing weakness, officials appear more focused on monetary policy normalization as a strategy for financial stability rather than direct foreign exchange interventions.

Interestingly, only one policymaker, Toyoaki Nakamura, opposed the rate hike. He argued that any changes to money market operation guidelines should wait until there is a verified increase in companies’ earnings power.

For further details, you can explore the official Bank of Japan Monetary Policy Decision document from January 2025.

In tandem with this rate announcement, the BOJ unveiled their Monetary Policy Outlook, sharing updated growth and inflation predictions:

  • The median forecast for core CPI in fiscal 2025 rises to 2.4%, up from the previous forecast of 1.9% in October.
  • For the next year, the core CPI forecast climbs to 2.0%, slightly above the prior estimate of 1.9%.

During a press briefing, Governor Ueda emphasized that upcoming policy decisions would be more influenced by inflationary pressures rather than strictly adhering to economic growth metrics. He acknowledged that while they can’t fully dismiss the threat of a deflation return, they are optimistic about real wages rising post "shunto" wage discussions.

Market Response:

The reaction in the currency markets was swift. Following the combined release of the monetary policy announcement and news of “hawkish hike,” the yen strengthened. Initially trending lower after recent national core CPI data, the yen reversed direction.

The USD/JPY pair fell by 0.3% to 155.61, with the yen making strides across various currencies. It maintained an advantage over the Swiss franc (gaining 0.17%) and the British pound (up 0.12%), though it did relinquish some of its post-announcement gains to the Australian dollar (-0.11%) and New Zealand dollar (-0.21%) after the press conference.

Tags: BankDecisionInterestJapanRaisesRates
Previous Post

Tesla Launches Updated Model Y in U.S., Priced at Approximately $60,000

Next Post

Bitcoin NVT Golden Cross Reaches 60-Day Low: A Bullish Signal?

Similar Stories

GBP/CAD Approaches Crucial Long-Term Trend Support Level

GBP/CAD Approaches Crucial Long-Term Trend Support Level

July 3, 2025
5 Unsettling Realities of Trading

5 Unsettling Realities of Trading

July 2, 2025

GBP/USD Retreats from 3-Year Peak as BoE Adopts Dovish Stance, Positive US Data Emerges

July 1, 2025

3 Essential Tips for Setting Up Your Forex Trading Station

June 30, 2025

Upcoming Week Highlights: US NFP, ISMs, Eurozone CPI, Japan Tankan, China PMIs, and Swiss CPI

June 28, 2025

XAG/USD Falls Below $36.20 as Bearish Reversal and US Yield Rebound Impact Market

June 27, 2025
Next Post
Bitcoin NVT Golden Cross Reaches 60-Day Low: A Bullish Signal?

Bitcoin NVT Golden Cross Reaches 60-Day Low: A Bullish Signal?

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

  • Trending
  • Comments
  • Latest
Trump’s Bold and Impactful Cabinet Selections Are Just What America Needs – News-Herald

Trump’s Bold and Impactful Cabinet Selections Are Just What America Needs – News-Herald

November 22, 2024
The Guardian’s Perspective: Global Justice at a Turning Point – The Imperative of Accountability for War Crimes | Editorial

The Guardian’s Perspective: Global Justice at a Turning Point – The Imperative of Accountability for War Crimes | Editorial

November 22, 2024
How Are U.S. Tariffs Impacting Your Business? Share Your Experience with Us.

How Are U.S. Tariffs Impacting Your Business? Share Your Experience with Us.

May 7, 2025
8 Updates to CPF in 2025

8 Updates to CPF in 2025

December 15, 2024
Trump’s Bold and Impactful Cabinet Selections Are Just What America Needs – News-Herald

Trump’s Bold and Impactful Cabinet Selections Are Just What America Needs – News-Herald

0
Don’t Let Political Turmoil Distract from the Climate Crisis

Don’t Let Political Turmoil Distract from the Climate Crisis

0
Democrats Challenge Trump Policies with Resistance Tactics

Democrats Challenge Trump Policies with Resistance Tactics

0
The Guardian’s Perspective: Global Justice at a Turning Point – The Imperative of Accountability for War Crimes | Editorial

The Guardian’s Perspective: Global Justice at a Turning Point – The Imperative of Accountability for War Crimes | Editorial

0
T-bill Yield Drops to 1.85%: What’s Causing the Decline?

T-bill Yield Drops to 1.85%: What’s Causing the Decline?

July 3, 2025
GBP/CAD Approaches Crucial Long-Term Trend Support Level

GBP/CAD Approaches Crucial Long-Term Trend Support Level

July 3, 2025
Belgravia Hartford Capital Finalizes Fourth Bitcoin Acquisition as Investment Holding Company

Belgravia Hartford Capital Finalizes Fourth Bitcoin Acquisition as Investment Holding Company

July 2, 2025
Video Highlights from Nasdaq: June 2025 Coverage with CorpGov and IPO Edge

Video Highlights from Nasdaq: June 2025 Coverage with CorpGov and IPO Edge

July 2, 2025
Bullnews - Your Daily Source for Financial Insights, Stock Market Trends & Investment News

Bullnews - Your Daily Source for Financial Insights, Stock Market Trends, Investment News, Cryptocurrancy News and More!

Categories

  • Alternative Investing
  • Crypto
  • ETFs
  • FX
  • Investing
  • Opinion
  • Personal Finance
  • Retirement
  • US News
  • World News

Site Map

  • DMCA
  • Disclaimer
  • Cookie Privacy Policy
  • Privacy Policy
  • Terms and Conditions
  • Contact us

Recent News

  • T-bill Yield Drops to 1.85%: What’s Causing the Decline?
  • GBP/CAD Approaches Crucial Long-Term Trend Support Level
  • DMCA
  • Disclaimer
  • Cookie Privacy Policy
  • Privacy Policy
  • Terms and Conditions
  • Contact us

Copyright © 2025 Bull News - All Rights Reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • USA
  • World
  • Investing
  • Alternative Investing
  • Personal Finance
  • Opinion
  • Retirement
  • ETFs
  • FX
  • Crypto

Copyright © 2025 Bull News - All Rights Reserved.