SINGAPORE (Reuters) – The Financial institution of Japan raised rates of interest on Friday in a broadly anticipated transfer, reflecting its rising optimism that wages will proceed rising and hold inflation sustainably round its 2% goal.
The board determined to boost the BOJ’s short-term coverage price 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 according to our expectations. We await feedback from BOJ Governor (Kazuo) Ueda at his submit assembly information convention. We need to know his outlook for the longer term price path, reasonably than why the BOJ raised charges at this assembly. The market now expects that the BOJ raises charges each six months so we need to know Ueda’s view on that.”
