MNI BRIEF: BOJ Lifts Policy Rate To 0.75%; Hike Mode Intact

The Bank of Japan on Friday unanimously decided to raise the policy interest rate to 0.75% from 0.50%, marking the highest level since 1995, while maintaining its gradual rate hike stance.

The largely anticipated move was the first rate increase since January this year, after uncertainty over the impact of U.S. trade policy on the global and Japanese economies drove the Bank's caution. (See MNI BOJ WATCH: Board To Consider Hike, Maintain Half-year Pace)

The BOJ said real interest rates are expected to remain significantly negative even after the policy change, and accommodative financial conditions will continue to firmly support economic activity.

As for the future conduct of monetary policy, the BOJ said that given real interest rates remain at significantly low levels, it will continue to raise the policy interest rate and adjust the degree of monetary accommodation if the outlook for economic activity and prices presented in the October Outlook Report is realised.