Bank of Japan Raises Benchmark Rate to 1.00%, Highest in 31 Years; Adjusts Debt Purchase Plan

According to Jin10 data on June 16, the Bank of Japan raised its policy rate from 0.75% to 1.00%, the highest level in 31 years, and announced plans to pause bond purchase reductions from April 2027 onward, maintaining monthly JGB purchases at around 2 trillion yen. The central bank stated it will continue adjusting its policy rate based on economic activity, price developments, and financial conditions.

Meanwhile, the Reserve Bank of Australia held its cash rate steady at 4.35%, ending three consecutive meetings of increases, citing persistent high inflation. ECB governing council members also signaled further policy tightening to combat inflation.