Will the Bank of Japan leave interest rates at 1.25% this time? Nikkei reports that it will meet on October 29–30 and keep the policy rate unchanged at 1.25%. It just raised rates once in September, so this time it will first assess the effects of that hike. The part I’m more interested in is what comes next: after excluding temporary fluctuations, they think underlying inflation has already reached 2%. Going forward, the priority isn’t to keep hiking, but to prevent inflation from rising significantly above 2% and then find the right time for another hike. Of the nine members, most are expected to vote to hold steady for now. For someone like me who looks at economic cycles, whether rates stay on hold is more of a slow-moving factor than daily ups and downs. How tight or loose financial conditions are over the next few months will probably depend on how this guidance plays out.
Do you think the “right time” they’re talking about will be pushed back significantly?
#日本央行 #利率