The Bank of Japan decided at its monetary policy meeting on the 18th to raise the policy rate from around 1.0% to around 1.25%, accelerating the pace of rate hikes. The interval since the previous hike in June will be 3 months, with the move intended to contain inflation, although it has been pointed out that higher interest burdens on companies and households could weigh on the economy.
The Bank of Japan decided at its monetary policy meeting on the 18th to raise the policy rate from its current level of around 1.0% to around 1.25%. As a result, the interest rate is expected to reach its highest level in 31 years, signaling a move away from monetary easing.
The interval since the previous rate hike in June will be 3 months, the shortest interval since the governor took office. The move is said to be aimed at containing inflation so that it does not exceed expectations, amid views that rising prices are being driven by factors including surging crude oil prices and the weaker yen.
The latest rate hike could increase the interest burden on companies and households, raising concerns about its impact on the economy. Attention is expected to focus on the direction of monetary policy going forward, depending on the BOJ's outlook.
The full text of the governor's remarks and additional explanations are provided in the body of the article, but detailed comments are being reported separately at present.