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2025-10-30 11:42:35
[Bank of Japan Keeps Interest Rates Unchanged, Two Members Support Rate Hike to 0.75%] 1. Maintaining Interest Rates: The Bank of Japan decided to maintain its short-term interest rate at 0.5% by a 7-2 vote. Board members Hajime Takada and Naoki Tamura voted against the decision, advocating for a rate hike. Takada believes Japan has "escaped deflation" and has largely achieved its price stability target. Tamura pointed out that "upside risks to prices" are increasing, and monetary policy should be closer to a neutral level. 2. Economic Outlook: The Bank of Japan raised its economic growth forecast for this year, believing that despite lackluster export and output performance, domestic consumption remains strong. 3. Inflation Outlook: Short-term potential inflation may stagnate due to slower economic growth. Long-term inflation is expected to gradually recover, stabilizing at the 2% target level by fiscal year 2027. Policy Stance and Risks: Most members chose to remain patient, emphasizing the need to confirm that wage growth and inflation can continue to rise in tandem. Economic risks are skewed to the downside. Inflation risks are broadly balanced. Uncertainty surrounding global trade policy and its potential spillover effects on prices and markets are the main sources of external risk.
