BOJ’s Policy Interest Hike Accelerated
The Bank of Japan decided to raise its policy rate from 1.0 percent to 1.25 in the Monetary Policy Meeting held on September 17 th and 18 th . The BOJ Governor, Kazuo Ueda, announced that the bank recognized change of policy phase from targeting price inflation toward 2 percent to stabilizing it at 2 percent, considering a risk of upward pressure. However, he did not make future moves clear, causing some disappointments of the markets. Since it started raising its policy interest rate in March 2024, the BOJ kept on adding by 0.25 percent approximately every half year. This time, however, the bank decided policy interest hike after three months from previous one. It can be regarded as an acceleration of interest hike. The rate reached the highest level since 1995. The decision was made with majority approval of seven members out of the nine. The bank stresses importance of stabilizing price inflation at the level of 2 percent. The BOJ’s “ outlook ” on e...