Bank of Japan Keeps Interest Rates Unchanged at 0.25%, Highest Since 2008

Sep 20, 2024, 02:56 AM

The Bank of Japan (BOJ) has decided to keep its benchmark interest rate unchanged at 0.25%, the highest rate since 2008. This decision was made unanimously at the conclusion of a two-day board meeting. The BOJ is signaling confidence in potential rate hikes in the coming months, despite maintaining the current rate. The yield on 30-year Japanese Government Bonds (JGB) is down 1 basis point to 2.045%, while the yield on 2-year JGBs has risen by 0.5 basis points to 0.385% following the policy decision. The BOJ's cautious approach comes as it navigates the task of normalizing monetary policy after a long period of ultra-easy measures. Core CPI in Japan has increased by 2.8% year-over-year. Additionally, the BOJ maintained its short-term interest target and overnight call rate at 0.25%.