The Bank of Japan raised its policy rate by 25 bps to 1.25%, marking the first
since hike the June meeting and taking the unsecured overnight call rate target
to a 31-year high since 1995. The decision, approved by a majority of the
nine-member policy board with two dissenting votes, was aimed at containing
upside price risks from rising oil prices and yen depreciation. The move
accelerates a roughly semiannual tightening cadence seen since March 2024.
