Statement on Monetary Policy

Japan holds rates steady, raises 2027 inflation forecast

BOJ kept policy rates unchanged and lifted its 2027 inflation outlook, signalling confidence in price momentum. USD/JPY traders watch for hawkish-bias confirmation; the rate hold limits near-term yen strength, but inflation guidance may support future tightening expectations and weigh on the yen over the policy horizon.

https://asia.nikkei.com/economy/bank-of-japan/boj-holds-interest-rates-raises-2027-inflation-outlook

Bank of Japan Holds Rates Steady as Inflation Exceeds 2% Target

BOJ kept rates unchanged despite consumer prices rising above its 2% target. The decision follows slowing retail sales (2.3% from 2.7% YoY), signaling the central bank sees no urgent need to tighten even as inflation persists. JPY traders await the press conference for guidance on the reaction function.

https://www.japantimes.co.jp/business/2026/10/30/economy/boj-rates-steady-inflation/

BOJ: Underlying Inflation Likely to Stay on Target

BOJ signals underlying inflation expected to remain aligned with its 2% target, following a slowdown in Japan retail sales to 2.3% YoY. The guidance addresses whether the central bank will adjust its reaction function; traders now await the BOJ press conference for clarity on policy path and rate expectations.

https://x.com/financialjuice/status/2116004646883820000

Bank of Japan: Financial Institutions' Lending Stance Stays Active

The BoJ reports that financial institutions maintain an active lending posture, signalling continued credit availability in Japan. This reinforces the central bank's accommodative monetary stance and supports JPY weakness against major currencies. Traders monitor BoJ messaging for shifts in policy tightening expectations.

https://x.com/financialjuice/status/2116003913057062950

Bank of Japan Holds Rates Steady; Yen Gains on Dollar

The Bank of Japan kept rates unchanged as expected and confirmed inflation reached 2% for the first time, supporting yen strength. USD/JPY weakens as BOJ signals steady policy while Fed rate trajectory remains the macro driver. Traders now await central-bank repricing across G10 as Fed holds rates amid stalled inflation.

https://www.bloomberg.com/news/articles/2026-10-30/yen-holds-gains-against-dollar-after-boj-keeps-rates-steady