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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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26 Articles
26 Articles
The Japanese central bank estimates for the first time that it has reached its inflation target of 2%, set more than 13 years ago to get the country out of deflation.
·Paris, France
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(Tokyo=Yonhap News) Correspondent Lee Do-yeon = The Bank of Japan, the country's central bank, [set] the short-term policy rate, its base interest rate, at the current 'around 1.25%' at its monetary policy meeting on the 30th...
·Seoul, Korea (the Republic of)
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Total News Sources26
Leaning Left3Leaning Right4Center9Last UpdatedBias Distribution56% Center
Bias Distribution
- 56% of the sources are Center
56% Center
L 19%
C 56%
R 25%
Factuality
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