Bank of Japan Keeps Interest Rates Steady

Forex - The Bank of Japan reaffirmed its commitment to achieving stable inflation and economic growth by keeping the policy interest rate unchanged as expected. The Japanese central bank maintained its overnight call rate target at 0.25%, the level reached after the last increase in July. The decision was made unanimously.

Governor Ueda will hold a press conference at 09:30 Turkey time. The decision on Thursday was not a surprise for most observers of the BOJ, as Governor Kazuo Ueda had previously indicated growing concerns about the increasingly uncertain global economic outlook. Ueda also stated that the BOJ has time to analyze risk factors, indicating that the bank will continue to take cautious steps.

Political uncertainty following the elections in Japan and ahead of the presidential race in the United States has strengthened the view that cautious policymaking will prevail. The BOJ noted in its quarterly outlook report released on Thursday that it expects inflation to remain close to its 2% target in the coming years. This closely watched report supports expectations that policymakers will soon resume raising interest rates.