Bank of Japan meeting raises interest rates by 0.25%
The Bank of Japan decided to raise additional interest rates
●Contents
① Raise the next day interest rate (short-term interest rate) for unsecured calls from “0 to 0.1%” to “about 0.25%” (the first interest rate increase since the negative interest rate policy was lifted in March this year)
② A plan to reduce the purchase amount of long-term government bonds from around 6 trillion yen per month to a scale of 3 trillion yen over 2 years has also been decided
●Background of interest rate hikes
Wage increases have spread domestically, and the goal is to correct the historical depreciation level of the yen.
Interest rate hikes are expected to have the effect of narrowing the interest rate difference with America and increasing the appreciation of the yen.
●Effects of interest rate hikes
Impact on households: While bank deposit interest rates are expected to rise, there are concerns that interest rates on variable mortgages will rise.
● Impact on businesses: Interest rates on capital loans for capital investment etc. will rise, and there is a possibility that consumption and investment will be affected.
The current interest rate hike is an important step towards achieving the goals of rising prices and rising wages.
●Contents
① Raise the next day interest rate (short-term interest rate) for unsecured calls from “0 to 0.1%” to “about 0.25%” (the first interest rate increase since the negative interest rate policy was lifted in March this year)
② A plan to reduce the purchase amount of long-term government bonds from around 6 trillion yen per month to a scale of 3 trillion yen over 2 years has also been decided
●Background of interest rate hikes
Wage increases have spread domestically, and the goal is to correct the historical depreciation level of the yen.
Interest rate hikes are expected to have the effect of narrowing the interest rate difference with America and increasing the appreciation of the yen.
●Effects of interest rate hikes
Impact on households: While bank deposit interest rates are expected to rise, there are concerns that interest rates on variable mortgages will rise.
● Impact on businesses: Interest rates on capital loans for capital investment etc. will rise, and there is a possibility that consumption and investment will be affected.
The current interest rate hike is an important step towards achieving the goals of rising prices and rising wages.
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