Bank of Japan Holds Rate at 1%, Board Member Takata Votes for Hike to 1.25%
The Bank of Japan kept its policy rate unchanged at 1 percent in an 8-1 vote, with board member Takata Sōtō dissenting in favor of a hike to 1.25 percent. The central bank reiterated its intent to continue raising rates based on economic and price conditions. Last month, the bank raised the benchmark rate to its highest since 1995. Following the decision, the dollar strengthened to 160.77 yen, and 100 yen bought 4.88 Hong Kong dollars.
The Bank of Japan voted 8 to 1 at its July 31 rate decision to keep the policy rate unchanged at 1 percent. Board member Takata Sōtō cast the dissenting vote, proposing a rate increase to 1.25 percent. The central bank said it would continue to raise rates as economic, price, and financial conditions evolve, implementing appropriate monetary policy from the perspective of achieving the inflation target in a sustainable and stable manner.
Last month, the central bank raised the benchmark rate to its highest level since 1995. After the rate decision, the dollar rose to 160.77 yen, and the rate for 100 yen was 4.88 Hong Kong dollars.