The BOJ announced that it would leave the policy rate unchanged at around 1.25%. In its latest outlook released at the same time, it indicated that the inflation rate was broadly consistent with the target, suggesting that further rate hikes may continue.
At its Monetary Policy Meeting, the BOJ decided to leave the current policy rate unchanged at around 1.25%. In its latest economic and price outlook released at the same time, it indicated that the underlying inflation rate was broadly consistent with the price stability target.
Based on this outlook, the BOJ indicated that it would avoid prolonged monetary easing while taking into account improvements in price trends and the growth outlook, and would not rule out the possibility of further rate hikes.
The decision was made against a backdrop of a gradual recovery in the domestic economy and the need to carefully assess price trends. For the time being, the BOJ is understood to have adopted a policy of observing conditions without changing interest rates.
Markets and companies are increasingly focused on the next disclosures and trends in upcoming economic indicators.