Bank of Japan declares victory in hitting price target, signals near-term hikes
It keeps policy rate steady at 1.25% and expects inflation to be "anchored around 2%".
On October 30, the Bank of Japan (BOJ) maintained interest rates at 1.25% at its two-day meeting, hailing a significant milestone in its 14-year quest to hit its 2% inflation target. Despite the steady rates, the central bank signaled its vigilance over inflation risks, indicating that near-term rate hikes might occur as early as December.
Governor Kazuo Ueda emphasized the need to anchor underlying inflation around the 2% goal, signaling a shift towards a more hawkish stance. While the BOJ refrained from committing to a specific rate hike schedule, it hinted at the possibility of increasing rates every few months. The bank's move to keep rates steady, despite meeting the inflation target, comes amid global concerns over inflationary pressures stemming from the AI boom and the Iran war-induced energy crisis.
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- Bank of Japan declares victory in hitting price target, signals near-term hikes businesstimes.com.sg
