TOKYO, Dec 19 (KUNA) -- Japan's central bank on Friday raised its policy interest rate to around 0.75 percent from 0.5 percent, the highest level in about 30 years.
At a two-day monetary policy meeting, the Bank of Japan's (BOJ) nine-member Policy Board unanimously decided to lift its target for the uncollateralized overnight call rate to a level not seen since 1995.
The move marked the first rate hike since January this year and followed six consecutive meetings in which the policy rate was left unchanged.
In a statement released after the meeting, the BOJ said Japan's economy "has recovered moderately, although some weakness has been seen in part." It also said underlying consumer price inflation "has continued to rise moderately." The central bank judged it "appropriate to adjust the degree of monetary accommodation from the perspective of sustainable and stable achievement of the price stability target of 2 percent." As for the future conduct of monetary policy, the BOJ said that "given that real interest rates are at significantly low levels," it will continue to raise the policy interest rate and adjust monetary accommodation if its outlook for economic activity and prices is realized.
The BOJ said real interest rates "are expected to remain significantly negative" and that accommodative financial conditions "will continue to firmly support economic activity," while uncertainties remain regarding overseas economic activity and prices, and developments in financial and foreign exchange markets. (end) mk.mt