Bank of Japan meeting —

At its 31 July 2024 meeting, the Bank of Japan raised its policy rate from -0.10% to 0.25%. The decision passed 7-2. 2 members dissented.

Decision

hike — -0.10% to 0.25%

Vote: 7-2

Dissenters

  • Seiichi Nakamura — preferred hold
  • Asahi Noguchi — preferred hold

Key passages

The Bank will encourage the uncollateralized overnight call rate to remain at around 0.25 percent.

Rate hike from 0-0.1% to 0.25%, tighter policy.

given that real interest rates are at significantly low levels, if the outlook for economic activity and prices presented in the July Outlook Report will be realized, the Bank will accordingly continue to raise the policy interest rate and adjust the degree of monetary accommodation.

Explicit signal of further rate hikes conditional on outlook.

Meeting documents

Background reading

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