BoJ Hikes Rate Amid Inflation Concerns, Halts JGB Purchase Taper

The Bank of Japan's (BoJ) Policy Board voted 7-1 to raise its policy interest rate by 0.25 percentage points to around 1.0%, with Asada Toichiro dissenting on growth concerns.

This decision, made at the June meeting, signals a board firmly focused on upside inflation risk despite acknowledging the drag from higher energy costs on activity.

The BoJ also decided to halt the taper of JGB purchases from April 2027 and hold monthly buying at about 2 trillion yen.