The Bank of Japan (BOJ) is expected to maintain its key interest rate at 1.25% during its upcoming policy meeting on October 29-30. According to Nikkei Asia, the central bank's governor, Kazuo Ueda, and the policy board will likely keep rates unchanged despite underlying inflation reaching the 2% target.
The decision comes as the BOJ assesses whether the current inflation rate is sustainable. While the underlying inflation rate has met the 2% goal, the bank appears cautious about further adjustments to its accommodative monetary policy.
Recent reports suggest that the BOJ has debated additional rate hikes to tighten conditions, but no immediate changes are anticipated. The central bank's focus remains on sustaining inflation at the target level without triggering excessive economic volatility.