The Bank of Japan raised its policy rate to 1.25% on the 18th, the first increase in three months, accelerating the pace of rate hikes. Governor Ueda Kazuo (植田 和男) said at a news conference that “the policy phase has changed,” indicating an approach aimed at containing upside risks to prices and stabilizing inflation near the 2% target.
The Bank of Japan decided on the 18th to raise its policy rate to 1.25%, the first increase in three months, accelerating the pace of rate hikes. This marked a phase in which monetary policy tightening is accelerating both in Japan and overseas.
At a news conference, Governor Ueda Kazuo (植田 和男) explained that the policy phase had changed toward containing upside risks to prices while stabilizing inflation near the 2% target. He indicated that the Bank would closely monitor developments in financial markets.
As inflation concerns intensify globally and the major central banks of Japan, the United States and Europe move to raise rates simultaneously, the focus will be on how the Bank of Japan's response unfolds.