The Bank of Japan will guide money market operations so that the rate remains around 1.25% until the next Monetary Policy Meeting. The applicable interest rate under the Complementary Deposit Facility will be set at 1.25%, and the Basic Loan Rate at 1.5%. For the Climate Response Financing Operation, the lending rate will be changed to a floating rate and an overall limit will be imposed.
At today's Policy Board Monetary Policy Meeting, the Bank of Japan decided by a 7-2 majority to guide money market operations so that the uncollateralized overnight call rate would remain around 1.25% until the next meeting.
The applicable interest rate under the Complementary Deposit Facility will be 1.25%. The applicable rate under the Complementary Lending Facility will be the Basic Loan Rate of 1.5%.
For the Climate Response Financing Operation, the lending rate will be changed to a floating rate, and limits will be set on the total amount of lending and other items.
The Bank's assessment is that, although some weakness has emerged in the Japanese economy partly due to the situation in the Middle East, it is recovering moderately. Growth is expected to be supported by government measures and expanding demand related to AI, and the Bank maintains its outlook that prices will rise to around 2%. In conducting monetary policy going forward, the Bank intends to consider raising the policy rate depending on economic conditions, with a view to achieving its 2% price stability target.