Bank of Japan considering additional interest rate hike and discussing raising it to around 0.25% = report

July 31, 2024 2:14 AM GMT+9 (some excerpts)

Domestic media such as NHK and Jiji Press reported that the Bank of Japan will consider additional interest rate increases at the second day monetary policy meeting to be held on the 31st and discuss a plan to raise short-term interest rates to around 0.25%. NHK reported that most of the nine policy committee members seem to be showing the view that prices are rising in line with the outlook.
If the Bank of Japan decided to raise additional interest rates, it lifted the negative interest rate policy in March, and since the policy interest rate was raised to around 0-0.1%.
Jiji Press reported that while private consumption is slowing down due to high prices, the Bank of Japan has determined that economic stagnation can be avoided due to effects such as wage increases and the government's flat-rate tax cuts. There is also a risk that import inflation will be rekindled due to the rapid depreciation of the yen, and it is said that there is a widespread view that interest rate hikes are appropriate.