Business · Economy · 2 hrs ago
Bank of Japan holds rate at 1.25% as December hike comes into view
The Bank of Japan kept its benchmark rate at 1.25% after a two-day meeting that ended Friday.
The decision passed by eight votes to one, with board member Hajime Takata dissenting.
The bank said underlying inflation had reached its 2% target, a key condition for raising rates.
That signal leaves a December rate increase possible, though the bank did not announce one.
Japan’s rate is already at its highest level in 31 years, but remains low compared with rates in other G7 countries.
The bank also said it would sell exchange-traded funds at a pace of about ¥860 billion a year.
Investors are watching for further guidance from Governor Kazuo Ueda and clues about how high rates could rise during the current tightening cycle.
The Bank of Japan kept its benchmark interest rate unchanged in an 8-1 vote.
Consumer prices are rising at more than 2% a year, which the bank has identified as its target.
The bank signaled that underlying inflation had reached its 2% target, according to Bloomberg.
The signal opened the door to a possible rate hike in December.
The BOJ accelerated ETF sales to about ¥860 billion ($5.5 billion) a year.
- Who
- The Bank of Japan.
- What
- It kept its benchmark rate unchanged in an 8-1 vote.
- When
- October 30, 2026.
- Where
- Japan.
- Why
- Not stated.
This story does not have two clearly opposing sides.
This story does not have a timeline yet.
- Vote
- 8-1
- Consumer price inflation
- More than 2% a year
- Underlying inflation signal
- Reached the 2% target
- Possible rate hike
- December
- ETF sales pace
- About ¥860 billion ($5.5 billion) a year