The Bank of Japan is expected to keep its policy rate at 1.25% at its October monetary policy meeting and assess price trends since the September meeting. It is highly likely to view the underlying inflation rate as having effectively reached 2%.
The Bank of Japan is expected to keep its policy rate at 1.25% at its October meeting and maintain a stance of avoiding decisions premised on a rate hike. The decision is expected to be approved by a majority of the 9 policy board members.
The Bank is highly likely to signal that the underlying inflation rate has effectively reached 2%. Going forward, it is expected to focus on keeping inflation stable without allowing it to exceed 2% while assessing the timing of an additional rate hike.
The focus going forward will be on price trends and the timing of adjustments to monetary policy, while Governor Ueda Kazuo (植田和男) is expected to continue referring to these issues in his remarks following the September meeting.
The formal details of the Bank of Japan’s decision are available only in the paid article, and follow-up reports are awaited.