Bank of Japan Seen Holding Rates at Oct. 29-30 Meeting as It Weighs Next Hike
Summary
- Nikkei reported that the Bank of Japan is expected to hold its benchmark interest rate at its Oct. 29-30 monetary policy meeting.
- Nikkei said the BOJ is likely to judge that underlying inflation has effectively reached its 2% target.
- Nikkei said the BOJ is likely to assess the impact of last month’s rate hike while seeking the right timing for additional tightening.
Forecast Trend Report by Period
The Bank of Japan is seen keeping its benchmark interest rate unchanged at the end of this month.
Odaily reported on Oct. 22 that the Nikkei newspaper said the BOJ will likely leave rates unchanged at its Oct. 29-30 monetary policy meeting. Nikkei said a majority of the central bank’s nine Policy Board members are expected to back holding rates steady.
Nikkei also said the BOJ may conclude that underlying inflation, excluding temporary factors, has effectively reached its 2% target. It added that monetary policy would then focus on preventing inflation from rising too far above 2% while keeping it stable.
At this meeting, the BOJ is likely to assess the impact of last month’s rate increase while searching for the appropriate timing for additional tightening, Nikkei said.
