Overview

• At the July meeting, the BOJ raised short-term interest rates to 0.25%, the highest since 2008.
• Two board members supported further rate hikes, stressing a 'timely and gradual' approach to avoid rapid increases later.
• Several members cautioned against moving too quickly, emphasizing the need to monitor economic risks and inflation expectations.
• The BOJ outlined a plan to reduce its massive bond buying, marking a step towards phasing out a decade of extensive stimulus.
• The yen strengthened and the Nikkei index suffered significant losses following the July rate hike decision.