In brief
The BOJ decided to keep its benchmark rate steady at roughly 1.25% after a recent 0.25‑point rise to a 31‑year high, while asserting underlying inflation has “generally” hit the 2 % target. The bank will monitor external price pressures and could raise rates to anchor inflation in the future. Other outlets echoed the rate decision and inflation assessment; Nikkei added a statement on the inflation gauge.
Japan’s central bank chose to leave its key benchmark interest rate unchanged at around 1.25 percent after concluding its two‑day monetary policy meeting on Friday, saying underlying inflation has broadly met its 2 % target, a statement released by the Bank of Japan (Source: Xinhua).
The unchanged decision followed a 0.25‑point hike in September that raised the rate to a 31‑year high of 1.25 percent, the BOJ noted that it would watch how higher financial conditions affect the economy and prices.
The central bank warned it would closely monitor external price pressures, citing higher crude‑oil and semiconductor prices, as well as yen depreciation, and said it could lift rates again to keep inflation anchored, a add‑on to its earlier guidance that the 2 % target has been “generally” achieved (Source: Xinhua).
In its quarterly economic outlook, the BOJ raised its fiscal‑2027 core consumer‑price‑inflation forecast to 2.6 % from 2.4 %, while trimming its real GDP growth projection to 0.7 % from 0.8 %. It also emphasized that sustained wage growth would be key to lock in a virtuous cycle of rising wages and prices (Source: Xinhua).
Other outlets echoed the rate decision and inflation assessment: the Nikkei published a statement saying the underlying CPI inflation is at a level that is “generally” within the 2 % goal, confirming the BOJ’s stance (Source: Nikkei).
