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Bank of Japan Hikes Interest Rate to 31-Year High

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The Bank of Japan raised its benchmark policy rate to a 31-year high of 1.25% from 1.0% at the conclusion of its monetary policy meeting on Friday.

The decision, approved by a 7-2 vote, was in line with market expectations and marked the second rate hike for the central bank this year.

The BOJ last raised its benchmark policy rate to 1.0% from 0.75% in June.

The central bank said Japan's economy is recovering moderately, although some weakness remains due geopolitical uncertainties acting as risks to the outlook.

The economy is expected to continue growing moderately, driven by rising global AI-related demand and various government measures, the BOJ said.

Rising crude oil prices and the depreciation of the yen have pushed medium- to long-term inflation expectations higher, bringing the underlying rate of consumer price inflation closer to the BOJ's 2% target.

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International

New Zealand Job Ads Rise 0.6% in August, Up 9.7% Annually, Says Seek

New Zealand job ads rose 0.6% month on month in August and are 9.7% higher year on year, with applications per job ad rising 0.9% month on month despite the increase in available opportunities, according to a Thursday report by Seek.The report said 4% of job ads reference artificial intelligence skills, with mentions rising 4.4% month on month and over 93% year-on-year, while job ads with high-automation exposure are now 0.1% lower year on year as those with medium or low exposure continue to rise.Several regions are recording double-digit annual growth, including West Coast at about 25%, Otago at roughly 19%, and Canterbury at nearly 16%, while Manawatū, Hawke's Bay, Northland, and Taranaki were the only regions where job ads declined month-on-month, the report added.The consumer services sector also grew significantly, led by hospitality and tourism at 3.4% and retail and consumer products at 3.3%, per the report.Seek NZ country manager Rob Clark said Auckland enjoyed exceptional monthly growth in August, growing at its fastest pace in over four years, driven by increasing demand for manufacturing, transport, tourism, and hospitality workers.

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International

Saudi Central Bank Lifts Rates by 25 Basis Points

The Saudi Central Bank on Wednesday decided to hike key rates by 25 basis points to maintain monetary stability.SAMA raised the repurchase agreement, or repo rate, to 4.50% and the reverse repo rate to 4%.The move follows the US Federal Reserve's decision to lift interest rates by 25 basis points.

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International

UAE Central Bank Hikes Rates by 25 Basis Points in September

The Central Bank of the United Arab Emirates raised the base rate applicable to the overnight deposit facility by 25 basis points to 3.9%, effective Thursday.Meanwhile, the interest rate applicable to borrowing short-term liquidity was maintained at 50 basis points above the base rate for all standing credit facilities, according to a Wednesday release.The CBUAE's decision follows the US Federal Reserve's move to increase the interest rate on reserve balances.

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