At its Monetary Policy Meeting, the BOJ left the policy rate unchanged at 1.25% and accelerated the pace of ETF sales to approximately ¥860 billion per year. It said underlying inflation was broadly consistent with the 2% target, marking the achievement after 13 years. The timing of the next rate hike will depend on future commentary.
The Bank of Japan announced at its Monetary Policy Meeting that it would leave the policy rate unchanged at 1.25%. It also said that underlying inflation, excluding temporary fluctuations, was broadly consistent with the 2% price stability target. This confirmed the BOJ’s stance of continuing its long-term monetary policy.
Regarding the pace of ETF sales, the BOJ decided to accelerate it from approximately ¥760 billion to approximately ¥860 billion per year. The policy was explained as being underpinned by the achievement of the 2% level after 13 years.
Governor Ueda was scheduled to explain the decision at a press conference, with further commentary announced for that evening. The timing of the next rate hike was said to depend on upcoming economic data and the explanations provided at the press conference.