🇯🇵The Bank of Japan raised its short-term interest-rate target from 1.00% to 1.25%; two board members opposed the decision.

The Bank of Japan raised its short-term policy-rate target to 1.25% from 1.00%. Board members Asada and Sato opposed the decision, according to the supplied financialjuice messages. The reported decision matched the 1.25% forecast shown in the channel’s release summary.

The dissenters questioned the case for tightening. Asada cited recent consumer-price growth below 2% as evidence that economic conditions were not necessarily robust, while Sato said economic and price trends had not accelerated significantly enough to justify an increase.

The bank’s accompanying messages emphasized the importance of stabilizing underlying inflation around 2%. It reported rising inflation expectations, continued pass-through of higher wages into selling prices, and the transmission of business-to-business price pressures into consumer prices.

Governor Ueda specifically identified the Middle East situation, expanding AI-related demand and foreign-exchange movements as factors requiring attention in assessments of activity and prices. The bank said the timing and pace of further rate increases would depend on the outlook and risks, while describing monetary conditions as remaining accommodative after this adjustment. These are policy statements, not a fixed schedule of subsequent increases.