Live Updates > Live Update Details
2025-12-17 14:44:13
[Bank of Japan May Raise Rates to 30-Year High, Pledges Continued Tightening but Pace Uncertain] 1. The Bank of Japan is expected to announce a rate hike on Friday, raising the short-term policy rate from the current 0.5% to 0.75%, reaching its highest level in 30 years. This move would mark the central bank ending the year with two rate hikes, despite pressure from US tariffs and policy uncertainty arising from the inauguration of a dovish new prime minister. 2. Sources indicate that the Bank of Japan is expected to pledge to continue raising borrowing costs, but will not explicitly commit to the pace and speed of subsequent rate hikes. This decision reflects the central bank's growing confidence in a virtuous cycle between domestic wages and inflation, believing that the economy has the conditions to sustain a steady rise in prices.
