The Bank of Japan’s monetary policy meeting has begun, with the policy rate expected to rise from the current 1.0% to 1.25%. A rate hike is expected as part of the policy normalization process, as rising oil prices and yen depreciation strengthen the risk of higher prices.
The Bank of Japan’s monetary policy meeting began on the 17th, and a report says the policy rate is expected to rise from the current 1.0% to 1.25%. The meeting is scheduled to last 2 days.
The hike would be the first in 3 months and is expected to form part of the normalization process following the end of large-scale monetary easing in March 2024.
A rise in the policy rate to 1.25% would bring it to its highest level in about 31 years, since April 1995. Renewed tensions in the Middle East and persistently high oil prices are increasing price pressures.
The U.S. Federal Reserve and ECB have also each decided to raise rates by 0.25% this month, prompting views that the major central banks are moving in step on the pace of rate hikes.