BOJ holds rates as inflation aligns with 2% target for first time since 2013
The BOJ declared that its underlying inflation target of 2% has been met, the first time the central bank has done so since it set the target in 2013.
The Bank of Japan has declared that its 2% underlying inflation target has been met, marking the first time this goal has been achieved since the target was established in 2013, according to CNBC World.
However, the Japan Times reports that consumer inflation in Tokyo remained well above the 2% target. According to the Ministry of Internal Affairs and Communications, consumer prices in the capital excluding fresh food rose 2.6% in October from a year earlier, down slightly from 2.7% in September. Overall inflation in Tokyo stood at 2.8%, while the index excluding fresh food and energy rose 2.6%.
The Japan Times notes that while the central bank's board is expected to hold policy settings steady, traders in the overnight swaps market were pricing in an approximately 80% probability of a rate hike in December. Subsidies intended to cap electricity and city gas bills helped limit price pressure in the latest reading, an effect that is expected to fade in future months.
Brief written by urgent.news from CNBC World, Japan Times — 2 reports on this story. Machine-written — may contain errors; check the original before relying on it.
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