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Article: Japan Raises Discount Rate to Bolster Yen
- Article from:
- The Washington Post
- Article date:
- May 31, 1989
- Author:
CopyrightThis material is published under license from the Washington Post. All inquiries regarding rights should be directed to the Washington Post. (Hide copyright information)
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The Bank of Japan, reacting to incipient signs of inflation and
worried about the weakening of the yen against the dollar, today
announced an increase in its key interest rate, the first such hike
in more than nine years.
The central bank's decision to raise its discount rate,
increasing the rate it charges banks for loans, had been expected for
some time.
Bank officials, led by governor Satoshi Sumita, had warned that
the economy was overheating and that the decline in the yen's value
was putting upward pressure on prices. Last Friday's release of
figures showing a 3.3 percent increase in Tokyo area consumer prices
apparently triggered today's action.
Japan had resisted ...