Caught between growing voices in Europe for a rate hike and domestic politicians pressuring against it, the Bank of Japan raised its benchmark interest rate to 0.50 percent Wednesday.
BOJ Gov. Toshihiko Fukui signaled the impending rate hike from 0.25 percent, and the decision prevailed in an 8-1 vote by the Policy Board. BOJ Deputy Gov. Kazumasa Iwata, a former senior official of the Cabinet Office, was the lone dissenter.
It was the first time a deputy governor voted against a governor's proposal since the central bank began to operate under the new BOJ Law established in 1998.