The Bank of Japan is expected to raise its policy rate by 0.25 percentage points to 1.25% at its monetary policy meeting on the 18th. It is expected to accelerate the pace of rate hikes to contain the risk of an upside inflation surprise.
The Bank of Japan is expected to raise its policy rate by 0.25 percentage points to 1.25% at its monetary policy meeting on the 18th. This would be an additional rate hike three months after the June meeting, as the bank moves to review its previous pace of raising rates every six months.
The stated aim is to contain the risk of an upside inflation surprise caused by higher crude oil prices and a weaker yen. The target for the unsecured overnight call rate will be raised to 1.25%.
The decision is expected to be approved by a majority of the 9 policy board members, with the formal announcement still pending. As this article is for members only, follow-up information is expected to be available via the linked page.