The Bank of Japan raises interest rates by 25 basis points, considering the monetary environment still accommodative

On February 19, the Bank of Japan raised interest rates by 25 basis points, bringing the short-term rate up to 0.75%, in line with market expectations, with the decision unanimously approved. The Bank of Japan expects real interest rates to remain at very low levels, and if economic and price trends meet expectations, and with improvements in the economy and prices, it will continue to raise policy rates. Even after the rate change, the monetary environment remains accommodative to support the economy. The Bank of Japan maintains its assessment of the Japanese economy; despite some softness, the economy has shown moderate recovery, and core inflation is expected to continue rising modestly.