The Bank of Japan is stepping up consideration of raising its policy rate from the current 1.0% to 1.25% at this month's Monetary Policy Meeting. Against a backdrop of rising upside price risks, it is exploring the possibility of additional measures.
The Bank of Japan is seriously considering raising its policy rate from the current 1.0% to 1.25% at its Monetary Policy Meeting on the 17th and 18th of this month. It has been reported that the bank is considering additional measures against a backdrop of rising price risks.
If the rate hike is approved, it would be the first increase in 3 months, since June this year, and the policy rate would reach 1.25%, its highest level in approximately 31 years, since April 1995.
The reported view is that the backdrop includes the risk of an upside surprise in prices stemming from the situation in the Middle East, yen depreciation and expanding demand related to artificial intelligence.