Bank of Japan raises benchmark interest rate for 1st time in 17 years
20 Mar 24 2 min read
Insights
- The Bank of Japan recently raised its benchmark interest rate for the first time in 17 years.
- The lending rate for overnight borrowing was raised to 0-0.1 per cent from minus 0.1 per cent.
- Monetary policy will remain easy for some time, bank governor Kazuo Ueda emphasised.
- Wages and profits at companies are improving, while Industrial production is stagnant.
“We made the decision because we foresaw stable and continuous 2 per cent inflation [the bank’s target],” the central bank’s governor Kazuo Ueda was quoted as saying by global newswires.
Monetary policy will remain easy for some time, he emphasised. He did not foresee any drastic rises in rates by private sector banks and other financial institutions, which will make their own decisions.
The negative interest rate policy, combined with other measures to inject money into the economy and keep borrowing costs low, ‘have fulfilled their roles’, he said.
- Vietnam on rough recovery trajectory in Apr 2024: HSBC report
- China's CPI rises 0.3% YoY, 0.1% MoM in Apr 2024; core CPI up 0.7% YoY
- Poland’s NBP keeps interest rates unchanged for 7th month in a row
- Bank of England keeps interest rates unchanged at 5.25%
- Bangladesh Bank’s exchange rate policy change sparks taka freefall
- Bangladesh central bank hikes policy rate by 50 bps to 8.5%
Wages and profits at companies are improving, the central bank noted in a release.
The bank said the current recovery was based partly on a ‘materialisation of pent-up demand’ amid weakening global demand.
Industrial production was, however, observed to be stagnant. Housing investment was relatively weak and government spending was ‘more or less flat’. Ueda termed the situation ‘less than perfect’.
“Concerning risks to the outlook, there are extremely high uncertainties surrounding Japan’s economic activity and prices,” the central bank added.
Fibre2Fashion News Desk (DS)
Popular News
|
ICE cotton resilient amid market uncertainties; eyes on key reports |
|
Foreign investment in Bangladesh declines in 2023: Reports |
|
Sri Lanka's garment exports ease 1.1% to $1,145 mn in Jan-Mar 2024 |
|
MS & JK to showcase pigment printing tech at ITM Istanbul |
|
Global fashion firms achieve progress in sustainability goals: Report |
|
Bangladesh Bank’s exchange rate policy change sparks taka freefall |