At its Monetary Policy Meeting on the 18th, the Bank of Japan decided to raise the policy rate to around 1.25%. This marks the first rate hike since June, three months ago, as the Bank tightened policy amid concern over the risk of rising prices.
The Bank of Japan held its Monetary Policy Meeting and formally decided to raise the policy rate to around 1.25%. This is the first rate hike since June this year, three months ago. At the meeting, the Bank indicated that it would maintain its vigilance in light of the risk of a substantial rise in prices.
The decision was prompted by concern over the risk of rising prices, and the Bank reaffirmed its policy of continuing to tighten monetary policy. With the policy rate raised to around 1.25%, attention will focus on the Bank's future policy response depending on the performance of economic indicators.