BOJ holds rates as underlying 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 left its overnight call rate unchanged at 1.25% on Friday. According to Investing.com, eight of the bank’s nine-member rate-setting board voted in favor of the hold, while board member Takata Hajime was the sole dissenter, calling for a 25 basis point hike.
The BOJ stated that underlying consumer price index inflation, which excludes volatile fresh food and energy prices, is now at a level generally consistent with its 2% price stability target and is expected to remain around that level. CNBC and CNBC World report this is the first time the central bank has met its 2% underlying inflation target since setting it in 2013.
In a statement, the central bank reiterated its intention to continue raising interest rates in response to growth and inflation. Investing.com reports the BOJ trimmed its core CPI forecasts for the fiscal year to March 2027 to a range of 2.4% to 2.5%, down from a previous range of 2.3% to 2.6%.
Brief written by urgent.news from CNBC, Investing.com, CNBC World — 3 reports on this story. Machine-written — may contain errors; check the original before relying on it.
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