Bank of Japan Confirms 2% Inflation Target After 13 Years, Holds Rate at 1.25%
Updated
Updated · Euronews · Oct 30
Bank of Japan Confirms 2% Inflation Target After 13 Years, Holds Rate at 1.25%
3 articles · Updated · Euronews · Oct 30
Summary
The BOJ said underlying inflation is now sustainably around 2% for the first time since adopting that target in 2013, but left its policy rate unchanged at 1.25% in an 8-1 vote.
September core inflation rose to 2.1% from 1.7% in August, and the BOJ said price gains should accelerate above 2% as oil costs, semiconductor prices and yen weakness lift energy and goods prices.
That combination reinforced expectations of further tightening, with officials widely seen moving again in December and Capital Economics forecasting the policy rate will reach 2% by mid-2027.
The decision highlights a split with Prime Minister Sanae Takaichi's government, which is still wary of declaring an end to deflation and has prioritized economic stimulus over faster rate increases.