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At its 18 September meeting, the Bank of Japan’s Policy Board voted 7–2 to guide the uncollateralized overnight call rate to around 1.25%. The new guideline takes effect on 24 September. The complementary deposit facility rate will also be 1.25%, while the basic loan rate will be 1.5%.
The Bank separately voted unanimously to move its climate-change financing operation to a floating loan rate and set lending limits. It said the changes aim to support private-sector climate efforts while keeping market operations smooth. Two members dissented on the main rate action, citing their assessment of recent inflation and economic conditions.