Live Updates > Live Update Details
2026-11-03 19:28:25
[Bank of Japan Keeps Interest Rates Unchanged, Signaling Further Rate Hikes] ⑴ The Bank of Japan (BOJ) voted 8-1 at its October meeting to maintain its short-term interest rate at 1.25%, in line with market expectations. This rate is the highest since April 1995, and the BOJ has already completed two 25bp rate hikes this year. ⑵ The BOJ stated that the underlying CPI is approaching the 2% inflation target for the first time, the current financial environment remains loose, and labor shortages support the wage-price cycle, indicating that further rate hikes are expected. ⑶ A member of the board, Takada Ventures, voted against the move, advocating for faster rate hikes and pushing interest rates to a neutral level as soon as possible. ⑷ Economic forecasts: The BOJ maintained its 2026 fiscal year inflation forecast at 2.5%, and raised its economic growth forecast to 0.7%; it slightly raised its 2027 fiscal year inflation forecast to 2.6%, and lowered its growth forecast to 0.7%.
