Overview
- The Bank of Japan raised its short-term policy rate by 25 basis points to 1.0 percent on Tuesday, June 16, taking borrowing costs to their highest level since 1995.
- Governor Kazuo Ueda missed the meeting for medical treatment so Deputy Governor Shinichi Uchida led the decision and will handle post-meeting communications.
- The BOJ approved the increase by a 7-1 vote and said it will slow the pace of reductions in its Japanese government bond purchases to support market stability.
- The Reserve Bank of Australia voted unanimously to hold its cash rate at 4.35 percent, citing moderating domestic data and the changing outlook for energy prices.
- A reported U.S.-Iran framework has pushed oil prices down but shipping and supply flows will reopen slowly so central banks and markets remain data-dependent with FX and carry-trade tensions affecting borrowers and investors.