The BOJ raised its policy rate to 1.25%, the highest level in 31 years. The decision was approved by 7 votes to 2, and Governor Ueda indicated that further policy tightening would be considered based on the data.
The Bank of Japan raised its policy rate on Friday from 1.00% to 1.25%, the highest level since April 1995. The decision was approved by 7 votes to 2, with Asada Toichiro (淺田統一郎) and Sato Ayano (佐藤綾野) voting against it.
At a press conference, Governor Ueda Kazuo (植田和男) said that, as current price conditions gradually approach the 2% target, the BOJ would not rule out larger or consecutive rate hikes, while adding that it was not assuming a fixed tightening path.
August consumer price data showed core CPI up 1.7% year on year and headline CPI up 1.9%. While energy subsidies pushed down headline CPI, corporate prices rose 7.6% year on year.
The yen weakened temporarily and the Nikkei Stock Average rose, but no clear guidance was provided on the pace of the next rate hike, while the dissenting votes of 2 committee members also drew market attention.