Bank of Japan raised the highest rates to the highest in 17 years
The central bank of Japan, while trying to curb rising prices, has increased the cost of borrowing at the highest level in 17 years.
The move by Bank of Japan (BOJ) to increase its short -term policy rate to 0.5% has come only a few hours after the latest economic data, showing that prices have risen at the fastest speed in 16 months last month.
In July, along with the increase in the last interest rate of BOJ, the report of weak jobs from the US surprised investors around the world, which led to the sale in the stock market.
The bank governor, Kazuo Ueda indicated this latest rate hike in advance to avoid another shock of the market.
According to official data, the main consumer prices increased by 3% in December in Japan.
Last year, BOJ had increased the cost of borrowing for the first time in 17 years.
This decision came when some of the country’s largest corporations increased salary to help their employees deal with the rising cost of living.
Since the late 1990s, wages in the country had stabilized as prices rose at a very slow pace or fall, due to which policy makers had to stay on a very loose monetary policy until after the epidemic.
