Bank of Japan says inflation hit 2% target after 13 years
Summary
The Bank of Japan said inflation has reached its 2% target for the first time in more than 13 years, but it kept interest rates unchanged at 1.25%. Officials said price pressures are likely to rise further, with a possible rate hike expected in December.
Key Points
- The Bank of Japan said inflation has finally reached its 2% target, more than 13 years after setting the goal.
- The central bank kept its key interest rate unchanged at 1.25% in a unanimous eight-to-one vote.
- Japanese officials expect inflationary pressure to continue building, with a rate hike possibly coming in December.
- The BoJ cited higher oil costs, energy and goods prices, semiconductor demand, and a weaker yen as factors pushing up inflation.
