The Bank of Japan raised its policy rate from 1.0% to 1.25%, making the 3-month interval between rate increases the shortest since Governor Ueda Kazuo (植田和男) took office. The BOJ indicated that it intends to continue raising rates while maintaining accommodative financial conditions.
The Bank of Japan decided at its monetary policy meeting to raise its policy rate from around 1.0% to around 1.25%. This is a 31-year high, and the interval since the previous increase in June is 3 months. The latest increase marks the shortest interval since Governor Ueda Kazuo (植田和男) took office.
In its published statement, the BOJ indicated that accommodative financial conditions would remain in place even after the rate increase and that it intends to continue raising rates in the future. The BOJ said it recognized a risk that inflation could overshoot above the 2% target.
2 of the 9 members dissented from the policy decision: Asada Toichiro (浅田統一郎) and Sato Ayano (佐藤綾野). Governor Ueda Kazuo (植田和男) is scheduled to explain the reasons for the decision at a press conference this afternoon.
Since lifting negative interest rates, Governor Ueda Kazuo (植田和男) has generally raised rates at a pace of about once every six months. The latest increase marks a de facto acceleration following the rate hold in June this year.