The Bank of Japan raised its short-term policy rate 25bp to 1.00% at the conclusion of a two-day meeting on Tuesday, moving from 0.75% on a 7-1 vote. The move, the first hike since December, was framed as addressing inflation risks stemming from the Middle East conflict and lifts the policy rate to a 31-year high. Governor Ueda was hospitalized and absent from the meeting and did not vote.

2026-06-16

The Bank of Japan raised its short-term policy rate 25bp to 1.00% at the conclusion of a two-day meeting on Tuesday, moving from 0.75% on a 7-1 vote. The move, the first hike since December, was framed as addressing inflation risks stemming from the Middle East conflict and lifts the policy rate to a 31-year high. Governor Ueda was hospitalized and absent from the meeting and did not vote.