{
  "id": 17151893,
  "title": "Bank of Japan to hold rates, signal further hikes",
  "url": "https://urgent.news/2026/10/30/bank-of-japan-to-hold-rates-signal-further-hikes",
  "topic": "world",
  "section": "World",
  "published": "2026-10-30T00:52:29.000Z",
  "source": {
    "name": "New Straits Times",
    "slug": "new-straits-times",
    "url": "https://www.nst.com.my/business/corporate/2026/10/1566651/bank-japan-hold-rates-signal-further-hikes"
  },
  "original_language": "en",
  "account": "On Friday, the Bank of Japan (BOJ) announced it would keep interest rates at 1.25 per cent, signaling its focus on preventing underlying inflation from overshooting its two per cent target. This stance indicates the central bank is open to raising borrowing costs as soon as December, presenting a shift towards a more hawkish policy phase, according to analysts.\n\nThe BOJ's decision aligns with global counterparts, including the US and European central banks, as they consider near-term rate hikes to tackle inflationary risks stemming from the AI boom and energy shock caused by the Iran war. Kazuo Momma, a former BOJ executive and executive economist at Mizuho Research Institute, notes that recent inflation is partly demand-driven due to strong global price pressures from AI investment.\n\nThe central bank is expected to maintain its policy rate at 1.25 per cent at the two-day meeting, leaving room for a potential rate hike in December and another in March next year. In its quarterly report, the BOJ may slightly revise upward its price forecast for the next financial year, signaling that underlying inflation has reached its 2 per cent target, as per sources familiar with the matter.\n\nWith wage gains becoming embedded and inflation expectations hovering around two per cent, the BOJ will likely emphasize its commitment to anchoring inflation around its target by raising rates towards neutral levels. Markets will closely watch Governor Kazuo Ueda's post-meeting news conference for insights into the pace and timing of further rate hikes.",
  "summary": "TOKYO: The Bank of Japan (BOJ) is set to keep interest rates steady on Friday but stress its focus on preventing underlying inflation from overshooting its two per cent target, suggesting scope to raise borrowing costs as soon as December.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 3,
    "also_reported_by": [
      {
        "outlet": "Japan Times",
        "title": "Japan’s Sumitomo Mitsui Trust Bank buys stake in Indian PE firm",
        "url": "https://urgent.news/2026/10/29/japans-sumitomo-mitsui-trust-bank-buys-stake-in-indian-pe-firm",
        "published": "2026-10-29T08:49:00.000Z"
      },
      {
        "outlet": "Channel News Asia",
        "title": "Bank of Japan to hold rates, signal further hikes",
        "url": "https://urgent.news/2026/10/29/bank-of-japan-to-hold-rates-signal-further-hikes",
        "published": "2026-10-29T21:01:26.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}