The Bank of Japan has reportedly decided to raise its policy rate from the current level of around 1.0% to around 1.25% at its next monetary policy meeting. If approved, the rate is expected to reach its highest level in approximately 31 years, as the BOJ responds to the risk of higher crude oil prices and a weaker yen pushing up prices.
The Bank of Japan is reportedly planning to raise its policy rate from the current level of around 1.0% to around 1.25% at its next monetary policy meeting, to be held on the 17th and 18th.
If the policy rate reaches 1.25%, it is expected to reach a level not seen in approximately 31 years. The move is positioned as a response to the risk that higher crude oil prices and a weaker yen could push up prices more than expected.
If the rate hike is approved, it would mark a policy shift three months after the June meeting, with the pace expected to accelerate from the previous trajectory.
The BOJ is also reportedly said to have conveyed its rate-hike policy to the government, and specific timing and impacts are expected to attract attention in future reports.