The Bank of Japan is preparing to discuss a possible increase in its policy interest rate to 1 per cent, likely at its next policy-setting meeting, Jiji Press learned on Wednesday (June 3).
The central bank’s next two-day Policy Board meeting is due to begin on June 15. Its policy rate, the target used to guide the unsecured overnight call rate, now stands at 0.75 per cent after the BOJ last raised it in December.
The planned debate comes as concerns remain strong that inflation could speed up while crude oil prices stay high, although the risk of further turmoil in the Middle East has eased.
Speaking in Tokyo on Wednesday, BOJ Governor Kazuo Ueda said, “It will be necessary to thoroughly discuss the pros and cons of raising the policy interest rate.”
