Bank of Japan Raises Rate to 1%, Highest Since 1995, as Iran War Adds Inflation Pressure
The Bank of Japan raised its short-term policy rate by 25 basis points to 1% from 0.75% in a 7-1 vote, taking borrowing costs to their highest level since 1995. The new target for the uncollateralized overnight call rate takes effect June 17 as the central bank seeks to tame inflation driven by the energy shock from the Iran war, and it warned that higher oil prices could push underlying inflation above its 2% goal.
Deputy Governor Uchida said the board took into account the risk that delaying policy adjustment could force a much larger increase later. He said wage and price dynamics are now entrenched, further hikes will depend on activity, inflation and financial conditions, and the BOJ is prepared to increase bond buying if yields surge.
From the sources (25 posts)
@businessThe Bank of Japan is widely expected to raise its benchmark interest rate to the highest level since 1995 at the first regular policy meeting ever held without the governor in attendance
@businessSpeculators have boosted their bets against the yen to a nine-year high, signaling the revival of the yen carry trade despite intervention risks and a potential rate hike by the Bank of Japan on Tuesday
@bulltheoryioJapan has triggered 4 market selloffs since 2024. Tomorrow could be the fifth. Tomorrow, June 16. The Bank of Japan announces its rate decision. 49 of 51 economists surveyed by Bloomberg expect a hike from 0.75% to 1%. Market probabilit
@reutersIran peace deal won't change BOJ's rate-hike plans, ex-central bank economist says
@financialjuiceBoJ lifts short-term interest rate target to 1% from 0.75%
@financialjuiceBoJ sets rate by 7-1 vote
@financialjuiceBOJ: board member Asada opposed rate decision
@financialjuice🔴 ⚠️ BREAKING: BOJ RATE DECISION ACTUAL 1% (FORECAST 1%, PREVIOUS 0.75%) $MACRO
@zerohedge*BOJ RAISES OVERNIGHT CALL RATE TO 1.00%
@financialjuiceBOJ to halt bond taper from April 2027, maintain monthly JGB purchases near 2 trillion yen
@financialjuiceBoJ: No change in plan to cut monthly JGB purchases by 200 billion yen each quarter through January-March 2027
@financialjuiceBoJ: to maintain monthly JGB purchases near 2 trillion yen from April 2027
@cryptoroverBEARISH 🩸 🇯🇵 Bank of Japan raises rates by 25 BPS to 1%. This is the highest level of interest rates in Japan since 1995.
@zerohedge*BOJ: TO KEEP RAISING RATE IN RESPONSE TO ECONOMY, PRICES
@financialjuiceBOJ board members Takata and Tamura oppose outlook description on prices
@financialjuiceBOJ: Japan’s economy has moderately rebounded, though some vulnerabilities remain
@financialjuiceBoJ: will end interim evaluation of bond taper strategy
@financialjuiceBOJ: risk of major economic slowdown appears to have eased from earlier
@financialjuiceBOJ’s Tamura considering underlying CPI inflation already aligned with price stability target
@financialjuiceBoJ: ready to adjust bond taper plan at future policy meetings if needed
@financialjuiceBoJ board member Tamura proposes reducing bond purchases by 200 billion yen quarterly from April 2027
@financialjuiceBOJ: Tamura's plan for tapering rejected by majority vote
@financialjuiceBOJ: risk of underlying CPI inflation rising above price target
@bulltheoryioBREAKING: 🇯🇵 Bank of Japan raises rates by 25 BPS to 1%, the highest level in 31 years.
@financialjuiceBOJ: Japan's financial conditions remain accommodative