Bank of Japan holds rates at 1.25%, raises 2027 inflation outlook

Key facts

• Bank of Japan held benchmark interest rate at 1.25%.
• Inflation outlook for 2027 was revised upward.
• Board member Hajime Takata dissented, advocating for a 1.5% hike.

The Bank of Japan concluded its two-day policy meeting on Friday, October 30, 2026, maintaining its benchmark interest rate at 1.25%. The central bank also revised its inflation outlook upwards for 2027 and stressed its readiness to continue raising borrowing costs to counter inflation risks. The decision was made by an 8-1 vote, with board member Hajime Takata dissenting and advocating for a 1.5% hike. Governor Kazuo Ueda is scheduled to hold a press conference to explain the policy.