BOJ Raises Rate to 1%, Highest Since 1995, Keeps Bond-Buying Taper Through Early 2027
The Bank of Japan raised its short-term policy rate to 1% from 0.75% in a 7-1 vote on Tuesday, taking borrowing costs to their highest level since 1995. It also kept its bond-buying reduction plan unchanged, cutting monthly Japanese government bond purchases by 5200 billion each quarter through the first quarter of 2027 and then holding them near 52 trillion a month from April 2027.
The BOJ said year-on-year consumer-price gains are expected to speed up well above 2% even as economic growth slows, and it said it can adjust the taper plan, increase JGB purchases or use fixed-rate operations if long-term rates spike. The decision, widely anticipated before Tuesdays meeting, came at a regular policy gathering held without the governor in attendance.
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