Bank of Japan Raises Key Interest Rates Ahead of Fed’s Announcement

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Jai Pratap

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Jai Pratap

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Jai serves as the Asia Desk Editor for Cryptonews.com, where he leads a diverse team of international reporters. Jai has over five years of experience covering the web3 industry.

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July 30, 2024

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The central bank of Japan has announced to raise key interest rates to 0.25% from its previous range of 0% to 0.1%. This is the second time since 2007 that the central bank has raised interest rates.

The US Federal Reserve will announce its decision on interest rates later tonight.

The Bank of Japan announced that it will reduce monthly purchases of Japanese government bonds to approximately 3 trillion yen per month during the January to March 2026 quarter. This reduction will see the amount cut by about 400 billion yen each quarter, the BoJ added.

The Bank of Japan projects that the core inflation rate, excluding fresh food prices, will hit 2.5% by the end of the 2024 fiscal year and hover around 2% for the 2025 and 2026 fiscal years.

The BoJ stated it will continue to raise the policy interest rate and adjust the degree of monetary accommodation, contingent on the realization of its economic outlook.

Fed Expected to Leave Interest Rates Unchanged

Later tonight, the US Federal Reserve will reveal its fifth interest rate decision for 2024 following a two-day Federal Open Market Committee (FOMC) meeting. Wall Street anticipates that the Fed will maintain the benchmark interest rates within the 5.25% to 5.50% range.

However, market participants will be closely watching for any indications that could suggest a potential rate cut in September.

At the time of writing, bitcoin is changing hands at just above $65,700, down 1.5% in the last 24 hours. XRP stood out in the last 24 hours with a gain of over 8% as it trades at $0.6488.