The Bank of Japan (BOJ) kept its benchmark interest rate unchanged at 1.25% following a two-day meeting on Friday. This decision was widely anticipated by all economists surveyed by Bloomberg, as the central bank had already raised rates in September for the first time in over a decade.
In a notable shift, the BOJ acknowledged for the first time that underlying inflation has hit its 2% target. This development signals that the door is now open for another rate hike as early as December, marking a significant milestone in the bank's monetary policy.
BOJ Governor Kazuo Ueda did not provide further details on the timing of future rate adjustments, but the statement suggests a cautious approach while recognizing the progress made in achieving the inflation goal.