The Bank of Japan (BOJ) has decided to maintain its target interest rate at 0.25%, following its two-day policy meeting that concluded on Thursday. This pause was anticipated by about half of the market participants, according to a recent analyst poll.
The decision comes amidst a divided outlook, with analysts nearly evenly split earlier this month on whether the BOJ would increase rates to 0.5% or wait until the January meeting for any adjustments. Market sentiment shifted in recent days following media reports suggesting the central bank might hold off on a rate hike.
This pause follows the BOJ’s move in March to end negative interest rates with its first hike since 2007, and a subsequent surprise increase in July to the current 0.25% rate.
BOJ Governor Kazuo Ueda is expected to address the decision and its implications during a news conference later today, shedding light on the central bank’s next steps in navigating Japan’s economic recovery.
The markets will now closely watch any signals from the central bank about future policy changes, particularly as the January meeting approaches.
