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Bank of Japan holds rate at 1.25% after saying 2% inflation target is met
CNBC reports the Bank of Japan held its policy rate at 1.25% and said underlying inflation is generally consistent with its 2% target for the first time since the goal was set in 2013.
- New headline Was: “BOJ holds rates as inflation aligns with 2% target for first time since 2013”
- Our desk filed its story
The Bank of Japan held its policy rate at 1.25% and said underlying inflation is generally consistent with its 2% target, the first such assessment since the target was adopted in 2013, CNBC reported1.
The hold left the rate at its highest level since 1995 and matched market expectations, according to CNBC1. The decision was 8-1, with board member Hajime Takata dissenting in favor of a rise to 1.5%1.
A CNBC survey of 16 economists before the meeting found all expected the bank to set the stage for a rate increase in December or January, as inflation and wages continue to rise1. Thirteen of those respondents put a terminal rate of 1.75% to 2% around mid-20271.
CNBC said Japan has been dealing with a weak yen and high energy prices that have pushed up inflation, while experts told the network that energy subsidies from the Takaichi administration are holding down consumer-price figures1. September core inflation was 2.1%, the highest reading in 2026 and above expectations, CNBC said, citing earlier data1.
Inflation-adjusted wages rose 1.5% year over year in August, the eighth consecutive monthly increase, according to government data cited by CNBC1. The network also cited a recent remark by Finance Minister Satsuki Katayama that Japan was near a shift to sustained, wage-driven inflation1.
