At its October policy meeting, the Bank of Japan left the policy rate at around 1.25% and stated that underlying inflation had approached the 2% level. It also indicated a policy of doubling the pace of ETF sales.
The Bank of Japan held a monetary policy meeting and decided by majority vote to maintain its target for the uncollateralized overnight call rate at around 1.25%. In its Outlook for Economic Activity and Prices released after the meeting, the underlying inflation rate was described as broadly consistent with the 2% target and is expected to remain at around that level going forward.
The assumptions underlying the outlook incorporated an upward revision to the inflation outlook due to factors driving higher crude oil prices, as well as stronger AI demand, and the fiscal 2027 outlook was updated from the previous forecast. Commissioner Takada Hajime (高田 創) proposed consecutive rate hikes from the previous meeting, but the proposal was rejected by majority vote.
The Bank of Japan also indicated a policy of accelerating ETF sales beyond the current pace, maintaining its readiness to respond flexibly.