BOJ Holds Policy Rate at 0.25%, One Dissent
The Bank decided by a vote of 8 to 1 to keep the uncollateralized overnight call rate at around 0.25%. 12
Board member Tamura proposed raising the rate to around 0.5%, citing growing upside risks to prices; the proposal was rejected by a majority. 12
The Bank judged that Japan's economy is recovering moderately, although some weak movements are seen. Year-on-year CPI excluding fresh food is in the lower 2% range. 12
The Governor said that, if the outlook materializes, the Bank will continue to raise the policy rate. He said more information on wage trends, including momentum toward next spring's labor negotiations, is needed, and noted uncertainty over the incoming US administration's policies. 1