BoJ raises policy rate, outlines plan to reduce bond purchases
Governor says bank will raise rates again if economy and prices move in line with projections
The Bank of Japan (BoJ) today (July 31) raised interest rates for only the second time in 17 years and outlined a plan to slow its massive bond-buying programme.
In a 7–2 vote, the bank’s policy board decided to raise its short-term policy rate, or the uncollateralised overnight call rate, to around 0.25%. The rate had previously stood at around 0% to 0.1%. The decision takes it to its highest level since 2008.
“If the economy and prices move in line with our projection, we will continue to raise
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