Japan’s Rate Hike: An End to Decades of Near-Zero Policy

The Bank of Japan raised interest rates to 0.75%, marking a significant shift from its near-zero borrowing costs policy maintained for decades. This move aligns with expectations to curb inflation. Governor Kazuo Ueda will provide more insight on the decision in a scheduled news conference.

The Bank of Japan took a significant step on Friday by increasing interest rates to a level not seen in three decades. This move marks the end of the era of massive monetary support and near-zero borrowing costs.

Meeting market expectations, the central bank unanimously agreed to raise short-term interest rates to 0.75% from the previous 0.5%.

Governor Kazuo Ueda is set to address the decision at a news conference at 3:30 p.m. (0630 GMT), providing further insight into the central bank's strategy.

(With inputs from agencies.)