Bank of Japan holds rates steady
The Bank of Japan kept its policy rate at 1.25% on October 30, in line with expectations, in an 8–1 vote.
Board member Hajime Takata supported an increase to 1.50%. The central bank also decided to accelerate ETF sales from 330 billion yen to 860 billion yen annually on a book-value basis starting January 2027. Its fiscal 2027 core inflation forecast rose from 2.4% to 2.6%.
The higher inflation outlook strengthened expectations of a possible December rate increase. Faster ETF disposals will shorten the estimated unwinding period from 112 years to approximately 43 years. However, the gradual pace could limit the immediate effect on Japanese equity markets.
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