Bank of Japan keeps rates steady at 1.25 percent
The Bank of Japan kept interest rates steady at 1.25 percent while revising up its inflation forecast. Analysts suggest the hawkish stance keeps a December rate hike on the table.
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The Bank of Japan maintained its short-term policy rate at 1.25% by an 8-1 vote on Friday, while upgrading its price forecasts and signaling readiness for further hikes. The decision matched expectations, though a dissenting vote and an unexpected acceleration in equity disposals caught markets off guard in Japan. Investors are now weighing whether policymakers will tighten borrowing costs further before the end of the year.
