Holds firm, but keeps December hike (and an earlier surprise) on the table
Broadly expected: The Bank of Japan (BoJ) left its overnight call rate (OCR) unchanged at 1.00% in an 8-1 vote, as policymakers stayed cautious after June’s rate hike, still assessing whether underlying inflation can sustainably hold around the 2.0% target amid continued uncertainty.
Short-term rate (8-1 vote): The BoJ reiterated that it will keep adjusting monetary policy as economic and price developments evolve, closely monitoring upside risks from currency moves, wage-price dynamics, and overseas developments. Board member Hajime Takata dissented, favouring a 25 bps hike on rising inflation risks from external demand shocks and shifting overseas financial conditions.
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