Under Governor Ueda Kazuo (植田 和男), the Bank of Japan raised its policy rate by 0.25 percentage points to 1.25%. Against a backdrop of heightened tensions in the Middle East and higher crude oil prices, it said upside risks to prices had increased.
As widely anticipated by the market, the Bank of Japan decided to raise rates for the first time in three months, while rate hikes in the US and Europe had led the way. The BOJ's stance is now being tested over the future independence of monetary policy and the path toward bringing inflation under control.
At its monetary policy meeting on the 18th, the Bank of Japan announced its decision to raise the rate from the current 1.0% to 1.25%. Against the backdrop of worsening conditions in the Middle East, which have driven up crude oil prices, it said it recognized that upside risks to prices had increased.
The full article is available only to paid members, so it cannot be read further, and a prompt to register as a member is shown alongside it. The article focuses on the Bank of Japan's policy decision and the market reaction.