TOKYO, June 16 (Reuters) – The Bank of Japan raised interest rates to a 31-year high on Tuesday, a widely expected move that signalled its focus on countering inflation risks from the Middle East conflict.
At a two-day meeting that ended on Tuesday, the central bank decided to raise its short-term policy rate to 1.0% from 0.75% by a 7-1 vote.
It was the first rate increase since December and brought the BOJ’s policy rate to levels unseen since 1995.
Governor Kazuo Ueda, who is hospitalised for a medical treatment, missed the meeting and did not vote. Deputy Governor Shinichi Uchida will hold a news briefing on Ueda’s behalf at 3:30 p.m. (0630 GMT) to explain the policy decision.
(Reporting by Leika Kihara, Makiko Yamazaki, Kantaro Komiya and Satoshi SugiyamaEditing by Chang-Ran Kim)
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