The Bank of Japan raised its policy rate by 0.25 percentage points, lifting its target to 1.25%. This marks the highest level in 31 years, since 1995, with 7 of 9 members voting in favor. Markets are focused on the next rate hike and Governor Ueda Kazuo (植田和男)'s policy stance.
The Bank of Japan decided to raise rates for the first time in three months since June, lifting its short-term interest rate target to around 1.25%.
The new level is the highest in 31 years, since 1995. The decision was supported by 7 of the 9 Policy Board members.
The BOJ was reportedly alert to the risk of rising prices due to higher crude oil prices stemming from the situation in the Middle East, as well as firm AI demand. The yen has remained at historically weak levels against the backdrop of continued US rate-hike policy.
Market attention has shifted to the timing of the next rate hike. The focus is on whether Governor Ueda Kazuo (植田和男) will outline his future policy stance at a news conference on the afternoon of the 18th.