The Bank of Japan raised its policy rate from around 0.75% to around 1.0%, reaching its highest level in 31 years since 1995. At the press conference following the meeting, it indicated that it would continue raising rates.
The Bank of Japan held a Monetary Policy Meeting on the 16th and decided to raise its policy rate, which is used to adjust prices and economic activity, from around 0.75% to around 1.0%. This puts the Bank's policy rate at its highest level in 31 years, since 1995. The move is intended to contain inflation caused by persistently high crude oil prices.
Governor Kazuo Ueda (植田 和男) was absent due to illness, so Deputy Governor Shinichi Uchida (内田 真一) held the press conference following the meeting and announced a policy of continuing to raise rates. Including this decision, the policy was supported despite opposition from one of the 8 Policy Board members other than the governor, who opposed it due to employment concerns.
The impact of the rate hike is expected to include a greater burden on households through higher repayments on variable-rate mortgages, while some also see benefits from higher interest on bank deposits. Companies have expressed concern about higher borrowing costs.
At the press conference, Uchida indicated concern that inflation could exceed the target of stabilizing the inflation rate at around 2% year on year and urged attention to future policy management.