The Bank of Japan (BOJ) tied further rate adjustments to developments in economic activity, prices and financial conditions, while assessing the likelihood of its baseline outlook and the risks to it.
In its September decision, the bank said the timing and pace of further rate increases would reflect economic activity, prices, financial conditions and risks to its outlook. It set the overnight call rate guideline at around 1.25%, effective Sept. 24.
The BOJ listed exchange-rate movements, AI-related demand and developments in the Middle East among the factors it would consider when setting the timing and pace of adjustments. It said Japan’s economy and prices were broadly following the path described in its July outlook and projected moderate growth, while warning that Middle East developments could weigh on activity.
The BOJ calendar lists its next Monetary Policy Meeting for Oct. 29-30 and the Bank’s View of its Outlook Report for Oct. 30. The full report is scheduled for the following business day.
