Bank of Japan meeting —

At its 19 December 2024 meeting, the Bank of Japan raised its policy rate from -0.10% to 0.25%. The decision passed 8-1. Naoki Tamura dissented, preferring a hike.

Decision

hike — -0.10% to 0.25%

Vote: 8-1

Dissenters

Key passages

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

Rate unchanged as expected; no surprise.

Tamura Naoki considered that, with economic activity and prices developing in line with the Bank's outlook, risks to prices had become more skewed to the upside, and proposed that the Bank set the guideline for money market operations as follows: the Bank would encourage the uncollateralized overnight call rate to remain at around 0.5 percent.

Dissenter wanted a hike, highlighting internal hawkish pressure and upside price risks.

Meeting documents

Background reading

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