Bank of Japan chief vows to keep raising interest rates

Group 1 - The Bank of Japan (BOJ) will continue to raise interest rates if economic and price developments align with its forecasts, indicating a commitment to monetary policy adjustments in response to economic conditions [1][2] - Japan's economy experienced a moderate recovery last year, despite challenges such as higher U.S. tariffs impacting corporate profits [1] - The BOJ raised its policy rate to a 30-year high of 0.75% from 0.5%, marking a significant shift from decades of low borrowing costs and monetary support [3] Group 2 - Wages and prices are expected to rise moderately together, suggesting a potential for sustained economic growth through adjusted monetary support [2] - The upcoming BOJ quarterly outlook report, scheduled for January 22-23, is anticipated to provide insights into the board's perspective on inflationary pressures resulting from recent yen depreciation [4] - The yen's weakness has increased import costs and broader inflation, leading some BOJ board members to advocate for further rate hikes [4][5] Group 3 - Market expectations of additional BOJ rate hikes have resulted in increased yields, with the benchmark 10-year Japanese government bond briefly reaching a 27-year high of 2.125% [5] - Finance Minister Satsuki Katayama emphasized that Japan is at a critical juncture in transitioning to a growth-driven economy, moving away from a deflationary environment [5]