The Bank of Japan held its benchmark interest rate at 1.25%
The Bank of Japan held its benchmark rate at 1.25% Friday, while indicating for the first time that underlying inflation has reached its 2% target. Bloomberg said the milestone opens the door to a rate increase in December. All economists surveyed by Bloomberg had predicted the hold, which followed a September hike.
More context
The Bank of Japan held its benchmark interest rate at 1.25% on Friday and said underlying inflation had reached its 2% target for the first time. The decision came at the end of a two-day meeting, according to the central bank’s statement. Bloomberg reported that all economists it surveyed had expected the rate to remain unchanged. Bloomberg described the inflation assessment as a milestone that opens the door to a rate increase in December.
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Reporting
- Bloomberg — JPY/USD: BOJ Holds Benchmark Rate Steady as Expected After September Hike - Bloomberg
- Financial Times — Subscribe to read
Verifier’s note
Bloomberg reports that the BOJ held rates and said underlying inflation had reached its 2% target. The Financial Times headline also reports that the target was reached, consistent with the proposed event.