BOJ Raises Its Interest Rate
The Bank of Japan announced that it raised its interest rate from 0.75 percent to 1.0 with 7 to 1 majority. The rate reached the highest level in these 31 years. The decision was based on their optimistic perspective for Japanese economy which is now suffering from price inflation and depreciation of Japanese yen, caused by the war in Iran. Nevertheless, foreign exchange did not show any significant surge of Japanese yen even after the policy change of BOJ. Monetary Policy Meeting (MPM) of the BOJ was held on June 15th and 16th with an irregular posture. BOJ Governor Kazuo Ueda was absent, because he had been hospitalized with infectious disease, not participating in the voting for the decision on interest rate. While the decision was overwhelmingly supported by the members of MPM, one member opposed to it, being afraid of exacerbation of production and employment in the future. Vice-governor of BOJ, Shin-ichi Uchida, showed optimistic viewpoints on Japanese e...