Japan's Central Bank Raises Interest Rate by 25 Basis Points to 0.75%

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Japan's Central Bank raised interest rates by 25 basis points to 0.75% on December 19, in line with market forecasts. This is the first hike in 11 months and the highest rate in 30 years. The Bank adjusted the call rate to 0.75% and raised related lending and deposit rates. Officials cited strong corporate profits and tight labor markets, noting stable wage growth ahead. The move comes amid global efforts like Countering the Financing of Terrorism and evolving frameworks such as EU Markets in Crypto-Assets Regulation. The Bank emphasized ongoing support for economic activity through negative real rates and signaled potential further tightening.
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