Bank of Japan holds rates at 1.25% as underlying inflation reaches target

World · First reported 29 Oct, 21:01 · Updated 21:40

Image: Wikimedia Commons · NASA Johnson Space Center · Public domain

The Bank of Japan kept its policy rate at 1.25% after a two-day meeting, while its quarterly report indicated underlying inflation had reached the 2% target. Attention now turns to Governor Kazuo Ueda’s news conference and signals about the pace of any future increases.

The BOJ held its policy rate at 1.25% at the end of its two-day meeting on Friday. (9bdb1b9e-28dc-468b-9295-ff92e4c7c99a)
The quarterly report indicated underlying inflation had reached the BOJ’s 2% target, which the bank says it will seek to anchor. (9bdb1b9e-28dc-468b-9295-ff92e4c7c99a)
Tokyo’s core inflation exceeded 2% in October, while analysts polled by Reuters mostly expected a rate increase to 1.5% in December. (26f92f35-d2cd-41fe-9740-fb7f6c29a3e6)

Summary written by Lux AI from 2 articles

Key facts

Policy rate: 1.25% after the Friday decision (9bdb1b9e-28dc-468b-9295-ff92e4c7c99a)
Inflation target: 2%; the quarterly report indicated underlying inflation had reached it (9bdb1b9e-28dc-468b-9295-ff92e4c7c99a)
Tokyo core inflation: Well above 2% in October (26f92f35-d2cd-41fe-9740-fb7f6c29a3e6)
December rate outlook: Most analysts polled by Reuters expected an increase to 1.5% (26f92f35-d2cd-41fe-9740-fb7f6c29a3e6)
Governor’s next public appearance: Kazuo Ueda was scheduled to hold a news conference later on Friday (9bdb1b9e-28dc-468b-9295-ff92e4c7c99a)