The Bank of Japan raised its policy rate to 1.25%, the highest level in 31 years. At a press conference, Governor Ueda Kazuo (植田 和男) indicated that the Bank plans to continue raising rates and suggested that it would continue doing so in response to financial conditions.
The Bank of Japan decided today at its Monetary Policy Meeting to raise its policy rate to 1.25%. This is the highest level since 1995, or in 31 years.
This was the first rate hike in 3 months, marking a faster pace of increases than previously. At a press conference, Governor Ueda Kazuo (植田 和男) said that, given current accommodative financial conditions, the Bank would continue raising the policy rate to adjust the degree of monetary easing. This underscored its policy of continuing to raise rates.
The press conference suggested that the future pace of rate hikes and the details of monetary policy implementation may become areas of market focus.