Bank of Japan raises interest rates to highest level since 2008

The Bank of Japan decided to raise interest rates by 25 basis points to 0.5%, bringing the rate to the highest level since 2008, marking the third rate hike since the central bank put an end to negative interest rates in March 2024.

The decision was split 8-1, the BOJ said in its statement, with board member Toyoaki Nakamura opposing the rate hike.

Nakamura said the central bank should only adjust policy after companies’ ability to generate profits is confirmed by reports due by the next monetary policy meeting.