In brief
On 30 October 2026, Japan's central bank maintained its key policy rate at about 1.25 %, saying underlying inflation had largely reached the 2 % objective. The BOJ will monitor external price pressures and may raise rates again, with a December meeting scheduled where another hike is expected.
In Tokyo on Friday, 30 October 2026, the Bank of Japan (BOJ) decided to leave its key benchmark interest rate unchanged at roughly 1.25 percent, after having raised it to a 31‑year high of 1.25 percent in September.
BOJ Governor Kazuo Ueda told reporters that the central bank’s monetary policy will increasingly focus on keeping underlying inflation firmly anchored around 2 percent, signaling that it could raise rates further to prevent price increases from overshooting the target.
In a quarterly economic outlook report released after the meeting, the BOJ said it will closely monitor external price pressures, citing higher crude oil and semiconductor prices, as well as the yen’s depreciation, while noting the impact of market movements associated with the Middle East, artificial‑intelligence‑driven global demand, and foreign‑exchange fluctuations.
In the same report, the BOJ raised its core consumer‑price‑inflation forecast for fiscal 2027 to 2.6 percent from 2.4 percent and lowered its real GDP growth projection to 0.7 percent from 0.8 percent.
Japan’s 2 percent inflation target was first adopted in January 2013, and the BOJ has stated that the target is generally achieved, although it remains cautious about sustained price stability.
Markets expect a potential rate hike at the BOJ’s next meeting, scheduled for 17‑18 December, after the central bank kept its rates unchanged today.
