The Bank of Japan decided at its Monetary Policy Meeting to leave the policy rate unchanged at 1.25%. It said that the underlying rate of price increases was at a “broadly consistent level” with the 2% price stability target.
The Bank of Japan decided at its Monetary Policy Meeting to leave the policy rate unchanged at 1.25%. The decision took into account factors including the impact of higher crude oil prices since the September meeting.
The BOJ released its Outlook for Economic Activity and Prices and reaffirmed its view that the underlying rate of price increases was “at a broadly consistent level” with the 2% price stability target. This indicated a policy of promoting the entrenchment of the 2% target.
The BOJ judged that it had effectively reached the 2% price stability target set in 2013 and was expected to seek to entrench this level going forward.
Expectations for a rate hike in December are reportedly growing in the market, and attention is currently focused on the governor's future comments.