Arabic version: بنك اليابان يثبت الفائدة ويعلن تحقيق هدف التضخم

According to Cnbc, the Bank of Japan held its policy rate at 1.25% and said underlying inflation was “generally consistent” with its 2% target, marking the first such assessment since the target was adopted in 2013.

The rate was kept at its highest level since 1995 in an 8-1 decision. Board member Hajime Takata dissented, favoring an increase in the policy rate to 1.5%.

The BOJ raised its fiscal 2027 inflation forecast to 2.6% from 2.4%. It also lifted its “core-core” inflation projection, which excludes fresh food and energy, to 2.7% from 2.6%.

The central bank warned that underlying inflation could move above 2%, citing a shift by companies toward raising wages and prices and other factors that could push prices higher. Krishna Bhimavarapu, APAC economist at State Street Investment Management, described the decision as a “hawkish hold,” while saying growth did not justify rushing the next move.

A CNBC survey of 16 economists found all respondents expected the BOJ to set the stage for a rate increase in December or January next year. Thirteen expected a terminal rate of 1.75% to 2% by around mid-2027. Japan’s inflation-adjusted wages rose 1.5% year on year in August, their eighth consecutive monthly increase.