The Bank of Japan is said to have judged that the underlying rise in prices had reached its 2% target, while favorable price increases have yet to materialize, and decided to raise the pace of ETF sales. It is being reported that a 0.25% rate hike is highly likely to be considered at the next meeting in December.
The Bank of Japan held a Monetary Policy Meeting on 30 October and decided to leave the policy rate unchanged. The decision was reportedly in line with market expectations, with 8 votes in favor and 1 against.
The Outlook Report indicated that the underlying rate of inflation had reached the 2% level. The median forecast for consumer prices for fiscal 2027 was revised upward from the previous forecast, while the forecast for real GDP growth was reportedly projected at a lower level.
The pace of ETF sales is expected to be revised upward to approximately ¥860 billion annually on a book-value basis from January 2027. The proportion of sales on a market-value basis is expected to rise from approximately 0.05% to approximately 0.1%.
The revision may entail political risks. While its direct impact on share prices is considered likely to be small, the final form of the exit strategy and its impact on the market are reportedly dependent on future developments.