The Bank of Japan raised its policy rate to around 1.25% at its monetary policy meeting, pushing it above the lower bound of the neutral rate. This was the sixth rate hike under Governor Ueda Kazuo (植田和男), making it the most active rate-hiking cycle in the past half-century.
The Bank of Japan held its monetary policy meeting through the 18th and decided to raise its policy rate from around 1.0% to around 1.25%. This puts the rate above the estimated lower bound of the neutral rate and at its highest level in approximately 31 years.
This was the sixth rate hike under Governor Ueda Kazuo (植田和男), if the end of the negative interest rate policy in March 2024 is counted as a rate hike. Even looking back over the past half-century, this marks the highest number of rate hikes in any previous rate-hiking cycle.
The article is available to members only, so detailed coverage is not accessible, but the Bank of Japan’s current policy operations and changes in interest rate levels have emerged as key areas of market focus.