Maintain cautious stance ahead of election and wage negotiations
Expected hold: After raising rates in December, the Bank of Japan (BoJ) kept its overnight call rate (OCR) unchanged. This time, only one well-known hawk dissented from the majority’s view.
Short-term rate (8-1 vote): The BoJ kept the OCR unchanged at 0.75%. The board reaffirmed that financial conditions remain accommodative despite December’s hike, and that underlying inflation is moving closer to the 2.0% target. Hajime Takata dissented, arguing that price stability has largely been achieved and calling for an increase to 1.0%.
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