MNI BRIEF: BOJ Decides Unanimously To Keep Rate at 0.25%
Focus will now shift to how BOJ Governor Kazuo Ueda signals the potential for further hikes and the impact of the Federal Reserve's 50bp cut to its benchmark rate on the Bank’s monetary policy at a post-meeting press conference later today
MNI (TOKYO) - The Bank of Japan board on Friday decided unanimously to keep the unsecured overnight call loan rate at 0.25%.
The Board's decision was largely anticipated. (See MNI BOJ WATCH: Board To Hold, Examine Economy, Price Risks)
Focus will now shift to how BOJ Governor Kazuo Ueda signals the potential for further hikes and the impact of the Federal Reserve's 50bp cut to its benchmark rate on the Bank’s monetary policy at a post-meeting press conference later today.
Policymakers are focused on the results of the BOJ’s September Tankan business sentiment survey due Oct. 1 and the branch managers’ reports at the quarterly meeting on Oct. 7. (See MNI POLICY: BOJ Hikes To Weather Weaker Consumption) Bank officials are also paying attention to the October price revisions to examine the strength of the wage-price virtuous cycle and the fundamentals for wage hikes next year.
Policymakers will review the medium-term economic growth and inflation rate at the October 30-31 meeting.