The Bank of Japan raised interest rates for the first time in three months since June, lifting its target for the policy rate from around 1.0% to around 1.25%. The new level is the highest in 31 years, since 1995, with 7 of the 9 members voting in favor.
The Bank of Japan decided to raise interest rates for the first time in three months since June, lifting its target for the policy rate from around 1.0% to around 1.25%. The new level is the highest in 31 years, since 1995. Seven of the 9 Policy Board members voted in favor of the rate hike.
The Bank was reportedly concerned about the risk of rising prices amid higher crude oil prices resulting from the situation in the Middle East and robust AI demand, while the yen remained at historically weak levels as the United States continued to maintain its stance of raising interest rates. Against this backdrop, the view has emerged that the Bank accelerated the pace of rate hikes and raised rates again after three months.
Market attention has already shifted to the next rate hike, and the focus will be on what policy Governor Ueda (植田) outlines regarding the pace of future rate hikes and other matters at his press conference on the afternoon of the 18th, according to reports.