Four unnamed sources told Reuters the Bank of Japan (BOJ) may hold its overnight rate near 1.25% at its Oct. 29-30 meeting unless a weaker yen raises import costs and fuels wider inflation.
In a poll conducted Oct. 13-19, Reuters found that 54 of 78 economists expected the policy rate to reach 1.50% during the fourth quarter. Of the 54 respondents who named a month for another increase, about 80% chose December and 2% selected the meeting that ends Oct. 30.
At its Sept. 18 meeting, seven board members supported the increase and two opposed it. The revised overnight target, about 1.25%, has applied since Sept. 24. More than half of the BOJ’s nine-member policy committee is expected to favor a pause.
The BOJ is also expected to assess underlying inflation — excluding temporary price fluctuations — as having reached its 2% goal. EconoTimes previously covered expectations for an October pause.
The BOJ’s policy statement and The Bank’s View of its October outlook are scheduled for Oct. 30. The full outlook text is due Nov. 2.
