The Bank of Japan Raises Interest Rates by 25 Basis Points as Planned

BlockBeats News, June 16, the Bank of Japan raised interest rates by 25 basis points, increasing the target rate from 0.75% to 1.00%, the highest level in 31 years, in line with market expectations, after three consecutive meetings of standing pat.

Reportedly, the Bank of Japan made the interest rate decision with a vote of 7 to 1 at the meeting.

The Bank of Japan also announced that it would pause the reduction of bond purchases starting from April 2027, maintaining the monthly purchase amount of Japanese government bonds at around ¥2 trillion.

Market analysis previously pointed out that the Bank of Japan's halt in reducing monthly bond purchases has a neutral to mildly positive impact on liquidity and the overall market, especially in avoiding sharp liquidity tightening.