While the Bank of Japan left its policy rate unchanged at its monetary policy meeting, global interest-rate developments are drawing attention, with the FRB and ECB also leaving rates unchanged. As a December rate hike is widely expected, its impact on living costs for ordinary people is being debated.
The Bank of Japan left its policy rate unchanged at around 1.25% at its monetary policy meeting. One policy board member proposed raising it to around 1.5%, but the proposal was rejected by a majority.
At the same time, the FRB and ECB also announced decisions to leave interest rates unchanged, meaning that an opportunity to narrow interest-rate differentials among Japan, the US and Europe was deferred. The decision was reportedly made with an eye to the risk of a sharp fall in stock prices and yen appreciation.
The Bank of Japan was reported to have announced that the underlying inflation rate had reached 2%. This prompted comparisons with the target set during Governor Kuroda's tenure at the Bank of Japan in 2013, and the gap between the target and ordinary people's experience was debated. December is widely viewed as the most likely timing for the next rate hike.