The Bank of Japan is widely reported to be highly likely to raise the policy rate from the current 1% to 1.25% at its Monetary Policy Meeting on 17 and 18 September. The focus will be on Governor Ueda’s explanation of the reasons for the decision and the outlook after the meeting concludes.
The Bank of Japan will hold a Monetary Policy Meeting from 17 to 18 September. Reports indicate that discussions are expected to move toward raising the policy rate from the current 1% to 1% to 1.25%.
On the second day of the meeting, the Bank of Japan is scheduled to hold a press conference to explain its decision and outlook. The Bank is expected to discuss its inflation outlook and the direction of monetary policy.
Higher crude oil prices, yen depreciation and stronger demand related to AI are being watched as risks that could push up prices. As a result, the pace of interest rate hikes and the speed of the Bank’s decision-making could become areas of focus.
At the previous meeting, the Bank of Japan left the policy rate unchanged, but indicated at its press conference that it could “accelerate the pace of interest rate hikes while monitoring price conditions.” The Bank’s future decisions will ultimately be made after reviewing economic and price trends.