BOJ lifts policy rate 25 bps to around 1.0%; vote split 7–1

The Bank of Japan said its Policy Board voted 7–1 on June 16 to raise the policy rate by 25 basis points, taking the target for the uncollateralized overnight call rate to around 1.0%. The decision takes effect June 17. The BOJ warned that higher oil prices could pass through via corporate pricing and push consumer inflation higher, increasing the risk that underlying inflation exceeds the bank's 2% target. TBS NEWS DIG reported the move puts Japan's policy rate at its highest level since 1995.