The Bank of Japan raised its policy rate to 1.25% at its monetary policy meeting. The hike, the first in three months, was approved by a 7–2 majority vote, and the Bank said it would consider additional rate hikes while monitoring price trends.
Following its meeting, which began on the 17th, the Bank of Japan decided to raise its policy rate to 1.25%. This represents a faster pace of rate hikes than the roughly once-every-six-month pace seen previously.
Seven of the nine Policy Board members voted in favor, while 2 voted against, resulting in a majority decision.
The rate hike was reportedly decided to curb the risk of price increases exceeding the 2% price stability target, as inflationary pressures intensify under the impact of soaring crude oil prices and the weaker yen.
Going forward, the Bank plans to consider the pace of rate hikes in line with economic, price and financial developments and adjust the degree of monetary easing. It also indicated that it would review its outlook in light of factors including the expansion of AI-related businesses and exchange rate fluctuations.