Tokyo (AP) -The Bank of Japan raised the main interest rates from 0.25 % on Friday to about 0.5 %, and noted that inflation is maintained at a desirable target level.
“The economy is gradually recovering.” BOJ GOV. KAZUO UEDA After the two -day policy committee in Tokyo, he told the reporters.
Governor Midorita will arrive at the headquarters in Tokyo on Friday, January 24, 2025 (Japan Pool via AP/Kyoto News)
He acknowledges that uncertainties remain, such as overseas inflation and fluctuations in foreign exchange rates. But he reaffirmed his views that if the economy remained stable, an additional hiking would be needed.
“Our basic ideas have not changed,” he added and emphasized the importance of higher prices and wages.
Recent price data indicates inflation rate for 2 % of the central bank goals. Government data has risen average 2.5 % last year, excluding unstable food prices, a few hours before the decision to be consumer prices. 。
In December alone, the consumer price index excluding food alone showed an increase of 3 %.
Another long -term concern was wage growth. Recent data has shown that Japanese workers have earned better wages and generally receive solid salaries in future annual union negotiations.
The Ministry of Labor has been adjusting the wage data in November to 0.5 % instead of reducing the decrease, helping the Bank of Japan's decisions.
Stock price He fell shortly after the announcement, but the benchmark Nikkai 225 recovered immediately and did not change.
The US dollar has decreased from about 156 yen to 155.41 yen on the day.
The price for July last year has risen The stock price has fallen. Banks are also monitoring the market reaction to US President Donald Trump's policy.
Ueda said that the response to rate hiking has been muted, suggesting that the decision of the central bank is about the goal.
The Bank of Japan increased the rate for the first time in 17 years In March last year, a negative interest rate policy equivalent to the negative borrowing rate ends.
Japan's many years of super -LAX monetary policy aimed to take the economy and promote growth from deflation. Deflation will stagnate the growth as companies reduce investment, reduce wages, and people reduce expenditures.
Japan's attitude is US Federal Reserve And the European Central Bank has reduced interest rates after raising them to conclude inflation. The Fed has recently indicated that the pace of interest rate reduction will be slow.
Pepper Stone's research strategist, Dillin Wu, has helped Japan's restricted immigration policies, shortage of labor due to market expectations for raising wages in 2025, and to raise interest rates. I'm thinking.
“Second, the shortage of immediate aggressive trade protectionism from President Trump after inauguration means providing an environment that is not severely affected by the yen assets and provides an environment that is advantageous for tightening.” Woo said.
___
Yuri Kageyama is in the thread: https://www.threads.net/@yurikageyama
