Overview
- The policy board voted unanimously to raise the benchmark from 0.50% to 0.75% in a widely expected move.
- Core consumer inflation registered 3.0% in November, remaining above the central bank’s 2% goal.
- The yen weakened slightly against the dollar after the decision, and Japanese government bond yields have climbed in recent weeks.
- Parliament approved an extra ¥18.3 trillion budget to finance a large stimulus package under Prime Minister Sanae Takaichi.
- BOJ officials said the economy has recovered moderately and indicated any further tightening will be guided by the outlook for activity, prices and financial conditions.