The Bank of Japan is set to raise its policy interest rate from the current 0.5% to 0.75% at the next monetary policy meeting, it has been learned.
The rate hike will be the BOJ’s first since January. Since then, the bank has held policy meetings six times.
The bank’s policy rate has not exceeded 0.5% since September 1995. The policy decision, expected at the two-day meeting set to be held from Thursday, will take the rate to a level unseen in 30 years.
The BOJ is set to resume its monetary policy tightening as companies in Japan are expected to approve further wage increases in next spring’s annual labor-management negotiations.
