BoJ tightens to 1% and plans end to JGB purchase reductions
Governor absent as bank sets policy at 31-year high amid inflation risks driven by Iran war
The Bank of Japan has raised interest rates to their highest level in 31 years in a widely expected move, and announced adjustments to its government bond-buying programme from next year.
The BoJ board decided in a 7–1 vote today (June 16) to increase the benchmark interest rate by 25 basis points to 1% in its first tightening move since last December. In a statement, the bank said the board had taken the decision to prevent inflation from increasing beyond its 2% target.
“Meanwhile, the risk of
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