BOJ Unanimously Maintains Policy Rate at 0.25%, Keeps 2.5% CPI Forecast Amid Moderate Recovery

Oct 31, 2024, 02:52 AM

The Bank of Japan (BOJ) has decided to maintain its current monetary policy stance, keeping the short-term interest rate target at 0.25%. The decision was made unanimously amid political uncertainties and a moderate economic recovery, with some weaknesses observed. The BOJ aims to achieve a 2% inflation target sustainably and stably, and it will continue to monitor financial and foreign exchange market movements closely. The BOJ's quarterly report indicates that core consumer inflation is expected to hover around 2%, with service prices rising moderately in line with wage gains. The BOJ also noted that the effects of cost increases on consumer prices have waned, and consumption is experiencing a moderate increase as a trend. Additionally, the BOJ has raised its GDP forecast for fiscal 2025 to 1.1% from 1.0% previously. The BOJ's board has kept its core CPI forecast for fiscal 2024 at 2.5%, the same as in July, and sees price risks skewed to the upside for fiscal 2025.