30th October 2026 – (Tokyo) The Bank of Japan left its policy rate unchanged at 1.25 per cent on an 8-1 vote, matching market expectations after the latest monetary policy meeting, as the dollar traded near 157.38 yen and every 100 yen bought about HK$4.96 in Hong Kong.
Policymakers said underlying inflation has reached a level consistent with the price target and is expected to stay near that mark. They stressed the need to watch carefully the risk that inflation drifts higher than intended and becomes entrenched, which could later weigh on the economy. Medium- to long-term inflation expectations are around 2 per cent.
Financial conditions remain accommodative, the bank said, and it will keep raising rates in light of economic and price developments as well as financial conditions. Timing and pace of further increases will be judged against how far the outlook matches the baseline scenario and against the related upside and downside risks around that path.
Officials again cast anchoring underlying inflation near the 2 per cent goal as essential, saying monetary policy would be conducted from the standpoint of achieving the inflation target in a sustainable and stable way, while guarding against upside inflation risks that could later hurt growth.
Separately, the bank decided to sell exchange-traded funds it holds at a scale of about 0.1 per cent of market turnover. On a book-value basis the planned ETF sale pace is about ¥860 billion a year, with the adjusted sales rhythm due to take effect in January 2027.
