Japanese media: Bank of Japan is expected to raise interest rates to 0.75%, the highest in 30 years
Odaily Planet Daily reports that the Bank of Japan will hold a monetary policy meeting on December 18-19, during which it will raise the current policy interest rate from 0.5%. The meeting is now in the final coordination stage. The most likely plan is to increase the rate by 25 basis points to 0.75%, reaching the highest level in 30 years since 1995. BOJ Governor Haruhiko Kuroda and other senior officials have hinted at the possibility of submitting a rate hike proposal. Surveys show that among the nine policy members, including the governor and deputy governors, more than half are expected to support the rate increase. Currently, no policy member has explicitly opposed the hike, and the Japanese government generally supports the rate increase. The BOJ will make a final decision after assessing whether market chaos such as a stock market crash or a sharp yen appreciation might occur. If the rate hike is implemented on Friday, it will be the first time in 11 months since January 2025 that the BOJ has raised rates.