Bank of Japan Holds Rates, Closing a Week Where Every Dissent Called for a Hike

The Bank of Japan kept its policy rate at 1.25% on October 30 in an 8–1 vote. Board member Hajime Takata dissented and proposed raising the rate to 1.5%, arguing that underlying inflation had reached the bank’s 2% target and that rates should rise toward neutral faster; the proposal was defeated. Toichiro Asada and Ayano Sato, who had opposed a September hike, backed the hold this time. The BOJ said underlying inflation is broadly in line with 2%, raised its fiscal 2027 core inflation forecast to 2.6% from 2.4%, and sees upside risks to prices. Japan’s core inflation exceeded 2% in September for the first time in nine months.