BOJ's Ueda hints at room for more hikes, stays flexible on pace, timing

Third increase under governor to 0.5% puts policy rate at highest level in 17 years

20250124 BOJ Ueda

Bank of Japan Gov. Kazuo Ueda speaks during a press conference after the BOJ meeting on Jan. 24 in Tokyo. (Photo by Yutaka Miyaguchi)

MITSURU OBE

TOKYO -- The Bank of Japan decided Friday to implement its third interest rate increase in a year, raising the policy rate by 25 basis points to 0.5%, as the central bank tries to strike a delicate balance between supporting the domestic economy and keeping the yen from weakening further against the dollar, amid uncertainties about the global economy with Donald Trump as the new U.S. president.

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