Bank of Japan holds rates at 1.25% as inflation hits target
In short
The Bank of Japan kept its rate at 1.25% and said inflation reached its 2% target for the first time.
That keeps the policy rate unchanged for now, but it raises talk of a possible hike in December. The reporting does not say whether the bank will act then.
What the reporting says
The Bank of Japan kept rates unchanged at 1.25 percent and said inflation hit its 2 percent target for the first time, according to the publisher summary. The move leaves December as a possible hike window, but no such decision was announced. The immediate effect is a steady policy rate, while the next step and any market response remain uncertain.
Why it matters
The Bank of Japan left rates unchanged at 1.25 percent while signaling that inflation reached its 2 percent target for the first time. That supports expectations of a possible December hike, but the reporting stops short of saying the bank will move then. The decision matters for Japanese bond, currency and equity markets because it could shift borrowing costs and yen expectations.