The Bank of Japan is stepping closer to a rate increase, with policy board members expressing confidence that, barring deviations from forecasts or unforeseen events, an upward move is likely. The board voted to keep the policy rate at 0.5% during its October meeting. The central bank will make the move as long as wages keep moving up at a healthy pace, and there are no big surprises.
The Bank of Japan is stepping closer to a rate increase, with policy board members expressing confidence that, barring any deviations from forecasts or unforeseen events, a move upward is likely. The policy board met for two days, on Oct. 29 and Oct. 30, voting to keep the policy rate at 0.5%. It has been at that level since January even as inflation remains stubbornly high.
The central bank will make the move as long as wages keep moving up at a healthy pace, and there are no big surprises. This signal highlights the BOJ's focus on inflation and wage trends in the Japanese economy, reflecting its cautious approach. Keywords include BOJ, U.S., tariffs, U.S.-Japan relations, inflation, and Japanese economy. The article was published on Nov. 10, 2025.