BOJ holds rates as inflation aligns with 2% target for first time since 2013
The split 8-1 decision keeps borrowing costs at a 31-year high as officials say persistent wage and price gains have brought inflation to target.
- 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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The Japanese yen gave back most of its earlier gains against the dollar after the Bank of Japan (BoJ) left its benchmark interest rate unchanged as expected, Bloomberg reports. Although Governor Ueda Kazuo maintained the possibility of further tightening, he did not provide any new clues on the timing of the next step, and stock markets were weighed down by an unexpected acceleration in the central bank's asset sales.
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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