The BOJ is expected to keep rates unchanged at its 29–30 monetary policy meeting, with broad expectations that it will recognize underlying inflation has reached 2%. The outlook is for the BOJ to signal its intention to maintain inflation steadily at 2% while considering another rate hike at its December meeting.
The BOJ is expected to keep its policy rate at around 1.25% at the monetary policy meeting to be held on the 29th and 30th. At its previous meeting, it continued to assess the timing of another rate hike. The BOJ is closely monitoring developments in prices.
The BOJ is widely expected to state that underlying inflation has reached its 2% target. This is attracting attention as a potential turning point away from the policy of overcoming deflation, and some expect the focus going forward to be on keeping inflation stable without allowing it to exceed 2%.
The BOJ is scheduled to present its view on underlying inflation in its Outlook Report. Following its release, the BOJ may look to raise rates again at its December meeting. Attention is also focused on developments surrounding the shift away from the effects of monetary easing during Governor Kuroda’s tenure.