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BOJ holds rates as inflation aligns with 2% target for first time since 2013
The central bank said underlying inflation has reached its target and signaled more rate hikes as it kept borrowing costs at a 31-year high.
- On Dec. 19, 2025, the Bank of Japan held interest rates at 1.25%, the highest level since 1995, declaring inflation "generally consistent" with its 2% target for the first time since 2013.
- Core inflation reached 2.1% in September, exceeding expectations, while Japan's inflation-adjusted wages rose for the eighth consecutive month in August, climbing 1.5% from a year earlier.
- Board member Hajime Takata dissented from the 8-1 decision, seeking a rate hike to 1.5%, while a CNBC survey of 16 economists anticipated the BOJ would set the stage for future hikes.
- Thirteen respondents expect the BOJ to reach a terminal rate of 1.75% to 2% by mid-2027, as Japan grapples with a weak yen and high energy prices driving inflation.
- Finance Minister Satsuki Katayama stated earlier this month that Japan was "on the cusp of shifting to a period of sustained inflation," though experts claim Takaichi administration energy subsidies are currently restraining consumer price index figures.
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28 Articles
28 Articles
The decision was largely planned, but inflation estimates open the door to a close in the coming months.
·Milan, Italy
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Coverage Details
Total News Sources28
Leaning Left3Leaning Right6Center9Last UpdatedBias Distribution50% Center
Bias Distribution
- 50% of the sources are Center
50% Center
L 17%
C 50%
R 33%
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