The Bank of Japan raised interest rates by 25 basis points, indicating that monetary conditions remain accommodative.

The Bank of Japan raised interest rates by 25 basis points, increasing the short-term rate to 0.75%, in line with market expectations and unanimously approved the decision. The Bank of Japan expects real interest rates to remain at extremely low levels and will continue to raise policy rates if economic and price trends meet expectations and improve. Even after the interest rate change, monetary conditions remain accommodative, supporting the economy. The Bank of Japan maintains its assessment of the Japanese economy, noting that despite some weakness, the economy has recovered moderately and core inflation is expected to continue to rise moderately. (Jinshi)