Bank of Japan Holds at 1.25%, December Hike Increasingly Expected
The BoJ voted 8-1 to hold rates steady, with one dissenter pushing for an immediate hike to 1.5%. Markets are now pricing in a 25bp December move as underlying inflation aligns with the 2% target.
What we know
The Bank of Japan held interest rates at 1.25% in an 8-1 vote. The lone dissenter called for an immediate move to 1.5%. The BoJ characterized underlying inflation as 'generally consistent' with its 2% target, cementing December hike expectations. Separately, Japan's Finance Minister Katayama flagged consideration of how to handle the surplus arising from BoJ ETF sales in the upcoming budget. The PBOC simultaneously set its overnight reverse repo at 1.25%, keeping Chinese policy on hold.
By the Global Eye 24 desk, with AI assistance. Updated as the story develops. Spot an error? Write to corrections@globaleye24.com.