TOKYO (AP) — The Bank of Japan raised its benchmark interest rate to 1% on Tuesday, citing challenges stemming from a weak Japanese yen and higher prices.
The central bank's increase in the uncollateralized overnight rate, by a quarter of a percentage point from 0.75%, puts it at a three-decade high.
The central bank has been trying to normalize monetary policy lately after decades of keeping interest rates near or below zero. It adopted ultralow rates to try to encourage more borrowing and spending to counter deflation and pull the economy out of the doldrums.
