The Bank of Japan is expected to signal at its 29–30 October meeting that it will keep the policy rate unchanged. While underlying inflation is judged to have reached the 2% target, the healthy inflation targeted about 14 years ago has still not been achieved.
The Bank of Japan is expected to maintain its policy of keeping the policy rate unchanged at its monetary policy meeting on 29 and 30 October. Following the September meeting, market expectations are that it is unlikely to implement another consecutive rate hike.
The current assessment points out that, while underlying inflation is judged to have reached the 2% target, it cannot be said that healthy inflation has been achieved over an extended period, and the level targeted 14 years ago has not been reached.