The Bank of Japan (BOJ) raised its key policy rate on Friday to levels unseen in 30 years, taking another landmark step in ending decades of huge monetary support and near-zero borrowing costs.
The 0.25 percentage point hike took the BOJ's benchmark short-term rate to 0.75%, its highest level since September 1995. It will raise costs for mortgages and other loans, but also boost yields on savings deposits.
The bank also signaled its readiness to continue raising rates by offering a slightly more upbeat view on the growth and inflation outlook, underscoring its conviction Japan was on course to stably hit its inflation target backed by wage gains.
"It is highly likely that wages and prices will continue to rise moderately," BOJ Governor Kazuo Ueda told reporters.
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