The BOJ is set to raise its policy rate from the current 1.0% to 1.25% at its September policy meeting. The additional hike would be the first in approximately 3 months and would bring the rate to its highest level since 1995.
The BOJ plans to raise its policy rate from the current 1.0% to 1.25% at its Monetary Policy Meeting on 17-18 September. The additional hike would be the first in 3 months since the June meeting, making it the shortest interval during the rate-hike cycle that began in March 2024. The move is intended to curb upside risks to prices stemming from higher crude oil prices and a weaker yen.
The rate hike is expected to be approved by a majority of the 9 Policy Board members, bringing the policy rate to 1.25%, its highest level in 31 years, since 1995.
The BOJ is said to be considering the direction of monetary policy going forward based on underlying trends in prices and wages, excluding temporary factors.