BOJ Seen Holding Rates Steady at End of October as It Weighs Timing of Next Hike
Summary
- Reports said the Bank of Japan is expected to keep its benchmark interest rate unchanged at the end of this month.
- Reports said the BOJ is likely to conclude that underlying inflation has effectively reached its 2% target.
- Nikkei said the BOJ is likely to assess the impact of last month’s rate increase at this meeting while looking for an appropriate time for further tightening.
Forecast Trend Report by Period
The Bank of Japan is expected to keep its benchmark interest rate unchanged later this month.
Nikkei reported on October 22 that the BOJ appears set to leave rates unchanged at its monetary policy meeting scheduled for October 29-30. The newspaper said a majority of the central bank’s nine policy board members are expected to support holding rates steady.
Nikkei also said the BOJ is likely to judge that underlying inflation, excluding temporary factors, has effectively reached its 2% target. It added that the central bank would then shift its policy focus to preventing inflation from rising above 2% and keeping it stable.
At this meeting, the BOJ is expected to assess the impact of last month’s rate increase while searching for an appropriate time for additional tightening, Nikkei said.
JOON HYOUNG LEE
gilson@bloomingbit.ioCrypto Journalist based in Seoul