The Bank of Japan raised its policy rate to 1.25% for the first time in 3 months, accelerating the pace of rate hikes. At a press conference, Governor Ueda indicated a change in the phase toward containing upside risks to prices and stabilizing inflation near the 2% target.
At its monetary policy meeting on the 18th, the Bank of Japan set its policy rate at 1.25% and decided to raise rates for the first time in 3 months, accelerating the pace of rate hikes.
At a press conference, Governor Ueda Kazuo (植田和男) said that “the policy phase has changed” and stated that the Bank would move toward containing upside risks to prices and stabilizing inflation near its 2% target.
As major central banks in Japan, the United States and Europe move to raise interest rates simultaneously amid growing global inflation concerns, the Bank of Japan’s conduct of monetary policy is facing a test.
The next paragraph of the article refers to companies passing higher costs through to prices and the resulting impact on consumer prices, but the available text contains only limited details.