Historic Rate Hike by Bank of Japan

In a significant move, the Bank of Japan (BoJ) has increased its benchmark interest rate by 25 basis points, from 0.25% to 0.5%, marking the highest level in 17 years. This decision comes as a response to the rising inflation rates, aiming to stabilize the economy.

Impact on Currency Markets

Following the announcement, the yen experienced a modest strengthening against the US dollar, with the dollar trading 0.29% lower against the yen, settling at ¥155.5550 at 4:57 am CET.

Inflation Data Spurs Action

The rate hike was announced shortly after the release of data from the Statistics Bureau of Japan, revealing that the annual inflation rate in December stood at 3.6%, a significant rise from previous figures.

More updates to follow as the situation develops...