The Bank of Japan is expected to leave its policy rate unchanged at the current 1.25% at its monetary policy meeting starting on the 29th. Although it raised rates last month against a backdrop of inflation risks, it is widely reported that the hike is likely to be deferred at this meeting.
Reports indicate that the Bank of Japan is expected to leave its policy rate unchanged at the current 1.25% at the monetary policy meeting starting on the 29th. This view was reported as coming from external sources, and a decision is expected to be made at the meeting.
The background includes the BOJ’s decision to raise the policy rate last month in response to inflation risks. The article presents the view that another rate hike at this meeting is unlikely.
Governor Ueda Kazuo (植田和男) is said to have indicated that he expects the long-term inflation rate to remain near 2%, while reports suggest that the possibility of reaching 2% could also be mentioned in the latest announcement. The impact of future price trends is said to warrant close attention.