Bank of Japan Holds Rates at 1% in 8-1 Vote, Signals Future Hikes

BOJ maintains 1% policy rate amid easing inflation risks. Core CPI forecast for FY2026 lowered to 2.5%, while GDP growth estimate rises to 0.6%.

Woofun AI reports that the Bank of Japan maintained its policy rate at 1% on Friday, following an 8-1 vote. Policy Board Member Kataoka dissented, advocating for a 25-basis-point increase to address upward price risks and shifts in the global financial landscape.

The central bank indicated readiness to adjust rates further based on economic and price developments. It revised its fiscal year 2026 core CPI forecast downward from 2.8% to 2.5% and increased the GDP growth projection from 0.5% to 0.6%, noting that underlying inflation remains near 2%.