BOJ Keeps Policy Rate at 0.25% Unanimously
The Policy Board decided unanimously to encourage the uncollateralized overnight call rate to remain at around 0.25%. The meeting was held on October 30 and 31. 12
The Outlook Report expects year-on-year core CPI to be in the mid-2% range in fiscal 2024 and around 2% in fiscal 2025 and 2026. The fiscal 2025 forecast was revised down somewhat from the previous report, reflecting the recent fall in crude oil and other resource prices. 12
The Bank judges that Japan's economy is recovering moderately, although some weakness is seen. It expects growth above the potential growth rate to continue. 12
The Governor said that if the outlook is realized, the Bank will continue to raise the policy rate and adjust the degree of monetary easing, given that real interest rates are at extremely low levels. 1
Uncertainty over Japan's economy and prices remains high. The Bank noted that exchange rate movements have become more likely to affect prices as firms' wage- and price-setting behavior grows more active. 12
The meeting also discussed the compilation of the multifaceted review, which the Bank plans to continue at the December meeting before publishing the results. 1