Economy News
Bank of Japan lifts rates to 1%, a 31-year high, with its governor in hospital
The Bank of Japan raised its policy rate from about 0.75% to about 1% on Tuesday 16 June, the highest level since September 1995, by a 7–1 vote at the end of a two-day meeting. Jiji Press says it was the first hike since December 2025, after three straight holds. The board also decided to stop reducing its government bond purchases next April and keep them at about 2 trillion yen a month, to avoid destabilising the bond market.
Governor Kazuo Ueda, 74, did not take part: he had been in hospital since 9 June for treatment of a liver cyst infection. According to Bloomberg, carried by The Edge Malaysia, it was the first policy meeting without a governor since 2010; Deputy Governor Ryozo Himino presided and Deputy Governor Shinichi Uchida gave the briefing.
How each outlet framed it
- Jiji Press — the Bank's own assessment that “Japan's economy has recovered moderately, although some weakness has been seen in part”.
- Kyunghyang Shinmun — the history: Japan's first rate in the 1% range in 31 years, after ultra-low rates since the bubble burst in the early 1990s, and, citing Nikkei, the aim of curbing the risk that rising oil prices amid Middle East tensions accelerate inflation.
- The Edge Malaysia (Bloomberg) — the leadership gap, and Ueda's expected return for the next meeting at the end of July.
What happened next: Ueda left hospital on 19 June and was due back at work on 23 June, The Edge Malaysia reported.
“There had been some concern among market participants, so his discharge should provide a sense of reassurance.” — Toru Suehiro, Daiwa Securities, via The Edge Malaysia
What we don't know yet: who cast the single vote against the hike; none of the three reports named the dissenter.