The Bank of Japan decided to accelerate the pace of rate hikes, doubling it from the previous pace of about once every six months. The background was explained at a press conference following the October meeting, highlighting a dilemma involving the risk of an economic downturn.
The Bank of Japan indicated that it would accelerate the pace of rate hikes from the previous semiannual pace to twice that pace.
Two factors underlie the decision: the risk of rising prices and slowing growth in the domestic economy, underscoring once again the difficulty of conducting monetary policy.
Following the decision at the October meeting, market and corporate reactions to subsequent policy operations and the pace of future rate hikes are being closely watched.
Governor Ueda Kazuo (植田 和男) is reported to have explained the background to the decision at a press conference, and the future direction of policy operations is being closely monitored.