look news india
Mumbai: Most of the world’s banks are in favor of reducing interest rate, while Bank of Japan has increased the interest rate by five percent to 0.50 percent on Friday. This is the highest level of interest rates since the 2008 financial crisis.
Given stable inflation and increasing wages, the Bank of Japan wants to normalize monetary policy.
A statement issued by the Bank of Japan said that eight of the nine members of the Bank of Japan voted in favor of raising interest rates, while one member voted against the increase.
After this decision, the Japanese currency was strengthened against the yen dollar and was spoken around $ 155.12 per dollar.
The statement said that due to increase in salary, inflation can increase, keeping this in mind, it has become necessary to increase the interest rate. In 2025, salary is expected to increase further and Japanese policy makers are monitoring it.
The statement further said that keeping in mind the increase in profits of companies and stress in the labor market, most companies have indicated to increase salary in the current year.
Inflation in Japan is moving towards two percent.
Meanwhile, other central banks of the world, including the Reserve Bank of India, are moving towards reducing interest rates. The US Federal Reserve has indicated the interest rate cut twice this year, while the RBI may cut the repo rate in the February meeting.
