BOJ Holds Rate at 1.25%, Signals 2% Inflation Goal as Yen Gains
Updated
Updated · Bloomberg · Oct 30
BOJ Holds Rate at 1.25%, Signals 2% Inflation Goal as Yen Gains
3 articles · Updated · Bloomberg · Oct 30
Summary
An 8-1 BOJ decision kept the benchmark rate at 1.25%, while saying underlying inflation is now generally consistent with its 2% target — a signal traders read as keeping a December hike in play.
The yen held broad gains after the statement, with strategists saying the inflation signal reinforced expectations that policy tightening is not over.
The BOJ also sped up balance-sheet normalization by raising annual ETF sales to about ¥860 billion, or roughly $5.5 billion.
Governor Kazuo Ueda’s press briefing around 3:30 p.m. local time is now the next test for how firmly the bank wants markets to price a year-end move.