Nikkei: Bank of Japan to keep interest rate unchanged at 1.25% at October policy meeting
Oct. 22 — According to the Nikkei, the Bank of Japan is leaning toward keeping its policy rate unchanged at 1.25% at its monetary policy meeting on Oct. 29–30.
Notably, the BOJ raised rates just last September. It is pausing rate hikes this time to assess whether the previous hike has had any delayed effects on Japan’s economy and prices.
The report said the BOJ is likely to state that underlying price increases, excluding temporary fluctuations, have effectively reached its 2% target.
The BOJ’s next priority is to prevent inflation from rising further and keep prices stable near the target. On that basis, it will continue to monitor inflation data and wait for the right time to consider another rate hike.
Markets broadly expect the BOJ to leave rates unchanged at this meeting. But holding steady does not mean letting its guard down: inflationary pressure from oil prices remains, and preventing inflation from overshooting is still central to the BOJ’s policy.
Some analysts expect the BOJ to continue flagging upside risks to inflation in its economic and price outlook report after the meeting, preserving room for future rate hikes. If the data continues to rise, December remains a potential window for a hike.
In summary, the above reflects market expectations ahead of the meeting, not the final decision. And even if the BOJ opts to wait and see this time, that does not mean the tightening cycle is over.
That is because persistent inflation driven by oil prices and fluctuations in the yen exchange rate remain key factors shaping the pace of future policy moves.
#日本央行10月利率决议
Oct. 22 — According to the Nikkei, the Bank of Japan is leaning toward keeping its policy rate unchanged at 1.25% at its monetary policy meeting on Oct. 29–30.
Notably, the BOJ raised rates just last September. It is pausing rate hikes this time to assess whether the previous hike has had any delayed effects on Japan’s economy and prices.
The report said the BOJ is likely to state that underlying price increases, excluding temporary fluctuations, have effectively reached its 2% target.
The BOJ’s next priority is to prevent inflation from rising further and keep prices stable near the target. On that basis, it will continue to monitor inflation data and wait for the right time to consider another rate hike.
Markets broadly expect the BOJ to leave rates unchanged at this meeting. But holding steady does not mean letting its guard down: inflationary pressure from oil prices remains, and preventing inflation from overshooting is still central to the BOJ’s policy.
Some analysts expect the BOJ to continue flagging upside risks to inflation in its economic and price outlook report after the meeting, preserving room for future rate hikes. If the data continues to rise, December remains a potential window for a hike.
In summary, the above reflects market expectations ahead of the meeting, not the final decision. And even if the BOJ opts to wait and see this time, that does not mean the tightening cycle is over.
That is because persistent inflation driven by oil prices and fluctuations in the yen exchange rate remain key factors shaping the pace of future policy moves.
#日本央行10月利率决议