Bank of Japan holds rates and signals December hike
The Bank of Japan kept interest rates steady at 1.25 percent while declaring victory on its long-standing price target. Officials signaled that the next rate hike could occur as soon as December amid rising inflation risks.
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The Bank of Japan kept its policy rate steady at 1.25% on Friday morning, while declaring victory in its 14-year campaign to hit its 2% inflation target. The decision aligns the central bank with peers in the United States and Europe as policymakers grapple with global energy shocks stemming from conflicts involving Iran and technology-driven demand. The shift signals that the central bank's next rate increase could arrive as early as December.
