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In the tenth day to meet on Friday, the BOJ has raised the short-term policy rate from 0.25% to 0.5% – a Japanese level not seen in 17 years. This is made with an 8-1 vote with a member of the Toyaaki board nakedly declined.

The following is the quotes from Boj Governor Kazuo Ueda’s comment on his post-meeting News Conference, made in Japanese, as routers are translated:

Increase in wages

“Many companies say they continue to raise bribe … Different data shows US economy is the higher pricing procedure for a year -they, the weak which yen pushes import costs. “

Rate in policy

“There is no change in our view of the development of our policy rate and adjustment to financial level if the economy and prices work on our forecasts.”

“Time to adjust finance adjustment depends on economic and price improvements. We will make a decision on every development of the morale and progress in risks. “

Sharp upgrade inflation forecasts

“The rise under inflation is moderate. I don’t think we’re serious behind the curve in dealing with inflation.”

Effect of Trump tariff policies

“There is a high uncertainty on the scale of tariffs. Once more explanation, we will take it to our announcements and show it to decide on the policy.”

“It is necessary to raise interest rates consistent with economic and price improvements. We also need to know how economy is growing in many steps in our actions.”

Terminal Rate

“There is no change in our view of the neutral rate, which of our estimates spread over a broad band. The estimated band is not very shortened at fixing rates of 0.5%. But there is some more distance. “

“Boj estimate appears in neutral rate, in nominal terms, is in a range of 1% -2.5%. Of course the distance rate is 0.5%. Of course, need to deepen analysis Where neutral rates can be affected by demographics and changes in economic structure. Let’s find out the real time. “

When Japan is still in control

“The government has a small distinct definition of deflation compared to ours, while we focus on our 2% abusive target, which is for an economic recalculation , as though Japan has moved from it somewhat relatively relatively. Of course, the risk of Japan to return to the defation of long runs is less. But chance seems to be low. ”

“The sharp inflation increase in the fiscal period 2025 is usually due to the pressures expected in the first half of the year, which can be broken later.” Be positive. “