Bank of Japan rate decision: December hike in focus

By Ahmed Azzam | @3zzamous

The BOJ held interest rates at 1.25% in an 8-1 vote, with Hajime Takata favoring an immediate increase to 1.5%. The central bank formally recognized that underlying inflation is consistent with its 2% target, a milestone more than 13 years in the making. More than 80% of economists expect a December rate hike, with some forecasts pointing to a terminal rate of 2% in 2027. The BOJ raised its fiscal 2027 core inflation forecast to 2.6% from 2.4%, largely reflecting higher energy prices. Annual ETF sales will increase from ¥330 billion to ¥860 billion starting in January 2027, accelerating balance-sheet normalization.

The central bank formally recognized that underlying inflation is consistent with its 2% target, a milestone more than 13 years in the making. More than 80% of economists expect a December rate hike, with some forecasts pointing to a terminal rate of 2% in 2027. The BOJ raised its fiscal 2027 core inflation forecast to 2.6% from 2.4%, largely reflecting higher energy prices. Annual ETF sales will increase from ¥330 billion to ¥860 billion starting in January 2027, accelerating balance-sheet normalization.

More than 80% of economists expect a December rate hike, with some forecasts pointing to a terminal rate of 2% in 2027. The BOJ raised its fiscal 2027 core inflation forecast to 2.6% from 2.4%, largely reflecting higher energy prices. Annual ETF sales will increase from ¥330 billion to ¥860 billion starting in January 2027, accelerating balance-sheet normalization.

The BOJ raised its fiscal 2027 core inflation forecast to 2.6% from 2.4%, largely reflecting higher energy prices. Annual ETF sales will increase from ¥330 billion to ¥860 billion starting in January 2027, accelerating balance-sheet normalization.

Annual ETF sales will increase from ¥330 billion to ¥860 billion starting in January 2027, accelerating balance-sheet normalization.