The Bank of Japan (BOJ) raised its key interest rate to the highest level since 2008 and expressed a more optimistic outlook on inflation. The hike was driven by reports showing consumer prices excluding fresh food rose at a faster pace of 3%, well above the central bank’s target of 2%. In its latest outlook, the BOJ raised most of its inflation projections, with all six currently set at 2% or higher for the first time since it began publishing these forecasts. This move underscores the BOJ’s growing confidence in achieving stronger price growth, signaling a potential shift in its monetary policy stance.
Source: https://www.bloomberg.com/news/articles/2025-01-25/world-economy-latest-bank-of-japan-raises-interest-rates-to-highest-since-2008