Bank of Japan raises benchmark interest rate, outlines roadmap for trimming bond buying program

PUBLISHED WED, JUL 31 2024 12:00 AM EDT
UPDATED 3 HOURS AGO
Lim Hui Jie

KEY POINTS
• Japan's central bank has raised its benchmark interest rate to "around 0.25%" from it previous range of 0% to 0.1%.
• This would mark the highest interest rates since October 2008, when it was set at 0.3%.
• It also said that it will reduce the monthly outright purchases of Japanese government bonds to about 3 trillion yen ($19.64 billion) per month in the January to March 2026 quarter.

Japan's central bank has raised its benchmark interest rate to "around 0.25%" from its previous range of 0% to 0.1% and outlined its plan to taper its bond buying program.

This would mark the Bank of Japan's highest interest rates since 2008.

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