SINGAPORE (Reuters) – The Financial institution of Japan raised rates of interest on Friday in a extensively anticipated transfer, reflecting its rising optimism that wages will proceed rising and maintain inflation sustainably round its 2% goal.
The board determined to boost the BOJ’s short-term coverage fee to 0.5% from 0.25% by an 8-1 vote. Board member Toyoaki Nakamura dissented to the choice.
QUOTES:
NAOYA HASEGAWA, CHIEF BOND STRATEGIST AT OKASAN SECURITIES, TOKYO
“The choice was in step with our expectations. We await feedback from BOJ Governor (Kazuo) Ueda at his publish assembly information convention. We wish to know his outlook for the longer term fee path, fairly than why the BOJ raised charges at this assembly. The market now expects that the BOJ raises charges each six months so we wish to know Ueda’s view on that.”
