Official announcement from the Bank of Japan following the December 2024 meeting

Bank of Japan Unanimously Holds Rates at 0.25%, Signals Possible Hike Ahead as Yen Strengthens

Oct 31, 2024, 02:57 AM

The Bank of Japan (BOJ) unanimously decided to maintain its ultra-low interest rates, keeping the benchmark rate unchanged at 0.25%. This decision comes amid political uncertainty following recent elections in Japan, which could slow economic reforms and impact the BOJ's policy outlook. The BOJ plans to release the results of a policy review at its December meeting. It projects GDP growth of 1.1% for fiscal 2025 and expects underlying consumer inflation to align with its 2% target in the second half of the fiscal 2024-2026 period, noting the impact of rising wages on inflation. BOJ Governor Kazuo Ueda indicated that the bank would adjust its monetary policy, including possible rate hikes, if the economic and price outlook is met. The yen strengthened slightly against the dollar following the BOJ’s announcement, reflecting market expectations.