BoJ lifts policy rate to 1.0%; 7-1 vote sets June 17 start

1.0% is now the Bank of Japan's target for the uncollateralized overnight call rate, after the Policy Board voted 7-1 on June 16 to raise the guideline for money-market operations. The new guideline and the 1.0% complementary deposit facility rate take effect on June 17, while the basic loan rate moves to 1.25%, according to the BoJ policy statement.

The central-bank action clears the finance crawler's Tier-1 threshold because it is a G7 rate decision with a concrete policy-rate change. CNBC's June 16 feed timestamp placed the item inside the 48-hour window, and its market framing noted the rate at its highest level since 1995.

Measure | Decision
Policy-rate guideline | Uncollateralized overnight call rate around 1.0%
Vote | 7-1, with UEDA Kazuo absent
Complementary deposit facility | 1.0%
Basic loan rate | 1.25%

The BoJ said Japan's economy had recovered moderately, though Middle East-related crude-oil pressures were weighing on activity. It added that core CPI, defined as all items less fresh food, had recently been below 2% because of government energy measures, but business-to-business pass-through from crude prices could spread to consumer prices.

The dissent came from ASADA Toichiro, who argued that Middle East-related downside risks to production and employment were larger than upside price risks. The next item to watch is the BoJ's June 24 Summary of Opinions, which should show how broadly the board accepts the risk that underlying CPI moves above the 2% target.

Not investment advice. Verify all figures with primary sources before acting.