BOJ holds rates as inflation aligns with 2% target for first time since 2013
The central bank said wages and import costs are keeping prices near target, and one board member dissented in favor of a higher rate.
- 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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At the two-day monetary policy meeting, BoJ chose not to change the rate, after having increased it from 1% to 1.25% in September, in a context of US insistence that Japan demonstrate to the markets its commitment to fiscal sustainability and the rise in interest rates.
Tokyo, 30 Oct (EFE).- The Bank of Japan (BoJ) decided this Friday to keep short-term reference interest rates at 1.25%, the highest level in almost 31 years in the Asian country, in a decision widely expected by analysts. At its two-day meeting on monetary policy, [...] The Bank of Japan entry keeps interest rates at 1.25%, although it anticipates further increases was first published in HolaNews.
Global Market: Bank of Japan achieves 2% inflation target after 13 years
The Bank of Japan declared its long-standing 2% inflation target achieved after more than 13 years, but kept its benchmark interest rate unchanged at 1.25%. Persistent inflation, rising oil and semiconductor prices, and yen weakness have fuelled expectations of another rate hike in December as policymakers gradually tighten monetary policy.
Bank Of Japan Holds Key Rate As Expected
The Bank of Japan left its key interest rate unchanged on Friday after a hike last month as underlying inflation is assessed to be consistent with the 2 percent inflation target. The policy board, governed by Ueda Kazu, voted 8-1 in favor of holding the interest rate at 1.25 percent, the highest since 1995.
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