The Bank of Japan preserved its short-term policy target at 1.25 per cent following a two-day monetary policy meeting. Central bank officials revised their inflation projections higher, signaling readiness to raise borrowing costs further to curb rising inflation risks. The policy decision passed via an 8-1 majority, with lone dissenter Hajime Takata pushing for an immediate increase to 1.5 per cent. Governor Kazuo Ueda will elaborate on the policy path at an upcoming press conference.
Key points
Policymakers signaled readiness to continue raising borrowing costs to prevent mounting i…: Policymakers signaled readiness to continue raising borrowing costs to prevent mounting inflation risks.
Internal dissent indicates growing pressure among some board members to push rates higher…: Internal dissent indicates growing pressure among some board members to push rates higher more quickly.
Markets await further policy guidance from Governor Kazuo Ueda during his scheduled after…: Markets await further policy guidance from Governor Kazuo Ueda during his scheduled afternoon press conference.
Sources checked by our analysis pipeline: 1
TOKYO, Oct 30 : The Bank of Japan kept interest rates steady on Friday, but revised up its inflation forecast and stressed anew its readiness to continue pushing up borrowing costs to forestall mounting inflation risks.
At a two-day meeting that ended on Friday, the central bank decided to maintain its short-term policy target at 1.25 per cent by an 8-1 vote. Board member Hajime Takata dissented to the decision, instead calling for a 1.5 per cent hike.
Governor Kazuo Ueda will hold a news conference at 3:30 p.m. (0630 GMT) to explain the policy decision.
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