The Bank of Japan raised its policy rate to 1.25% at its monetary policy meeting, delivering its first rate hike in 3 months. The decision passed by a 7-2 vote, while attention now turns to market developments and Governor Ueda's press conference.
The Bank of Japan raised its policy rate from 1.0% to 1.25% at its monetary policy meeting. This was the first rate hike in 3 months, since June this year.
The decision was reached by a 7-2 vote among the 9 policy board members. Most market participants believe the rate hike has already been priced in, and its impact is expected to be limited.
Governor Ueda (植田) is scheduled to hold a press conference from 3:30 p.m., with market participants focusing on the timing of the next rate hike and the messages conveyed by the governor.
The focus will be on how developments in the United States and comments from policy board members influence this decision, as well as the Bank of Japan's future direction.