Japan's finance minister signals support for BOJ rate hike

Japanese Finance Minister Satsuki Katayama on December 14 expressed alignment with the Bank of Japan's anticipated interest rate hike, addressing media reports during a speech in Sendai.

Japanese Finance Minister Satsuki Katayama signaled government support for an anticipated Bank of Japan interest rate hike from around 0.5% to 0.75% during a speech in Sendai, Miyagi Prefecture, on December 14, 2025. 'There is no major disagreement between us and the BOJ,' she said. 'I thought I should say this since reports have been circulating.'

The remarks follow the BOJ's two-day monetary policy meeting that concluded on Friday, December 12, highlighting coordination between the government and central bank amid economic policy discussions. Katayama's statement aims to quell media speculation and affirm policy unity, with the hike expected to influence Japan's economy.

Relaterede artikler

BOJ Governor Ueda announces 0.75% rate hike at press conference, with dynamic charts of yen fluctuations, inflation, bank adjustments, and market reactions in Tokyo financial district.
Billede genereret af AI

BOJ 0.75% Rate Hike: Ueda's Outlook, Market Reactions, and Bank Responses

Rapporteret af AI Billede genereret af AI

Following its December 19-20 policy meeting, the Bank of Japan raised its rate to 0.75%, prompting yen fluctuations, sustained high inflation, bank rate adjustments, and measured government support amid U.S. tariff concerns and shunto wage prospects.

The Bank of Japan decided on December 19 to raise its short-term policy rate target from 0.5% to 0.75%, marking a 30-year high since 1995 and the first increase since January. The move anticipates wage hikes and aims to achieve the 2% inflation target amid elevated inflation and a weak yen.

Rapporteret af AI

The Bank of Japan raised its policy rate to 0.75% from 0.5% on December 20, marking a 30-year high aimed at curbing inflation. However, the yen weakened sharply against the dollar and other major currencies. Markets reacted with sales due to the BOJ's vague outlook on future hikes.

Japan's benchmark 10-year government bond yield rose to 2.230 percent in Tokyo trading on January 19, 2026, reaching its highest level since February 1999 in 27 years. The increase stems from concerns about worsening fiscal health ahead of a House of Representatives election. Pledges for consumption tax cuts by major parties are raising fears of more bond issuance.

Rapporteret af AI

Core consumer prices in Tokyo rose 2.3 percent year-on-year in December, slowing from 2.8 percent in November but staying above the Bank of Japan's 2 percent target. The figure fell short of market expectations of 2.5 percent, triggering yen weakness. As a leading indicator for nationwide trends, the data will factor into the BOJ's next policy meeting.

Japan's government has revised upward its economic forecast for the fiscal year ending next March, projecting acceleration in growth the following year due to a massive stimulus package boosting consumption and capital expenditure. The latest projections, approved by the cabinet on Wednesday, expect 1.1% expansion in the current fiscal year. Growth is forecasted at 1.3% for fiscal 2026.

Rapporteret af AI

On Friday, January 24, 2026, the yen recorded its biggest one-day gain since August amid rising speculation that Japanese authorities might intervene in the market to stem its decline. The currency rallied as much as 1.75% against the dollar to ¥155.63, reaching its strongest level of the year. The surge was triggered by reports that the Federal Reserve Bank of New York had inquired about the yen's exchange rate with financial institutions.

 

 

 

Dette websted bruger cookies

Vi bruger cookies til analyse for at forbedre vores side. Læs vores privatlivspolitik for mere information.
Afvis