almost 90% of economists surveyed by CNBC<\/a> expecting the 25-basis-point tightening. Those surveyed also correctly predicted the dissenters to the decision.<\/p>\nIn its statement, the BOJ said the move was because of a risk that inflation will deviate upward to beyond its 2% target.<\/p>\n
The central bank added that it aims to stabilize underlying inflation at “around 2%” so that price rises do not overshoot its target and adversely affect the Japanese economy afterward.<\/p>\n
The hike comes amid rising inflation in the country and a historically weak yen, with the latest inflation headline rate for August at 1.9% and Tokyo and Washington conducting a coordinated intervention to prop up the yen.<\/p>\n
The currency traded at 156.64 after the decision, weakening 0.45%, while the benchmark 10-year Japanese government bond yield fell 4.9 basis points to 2.947%.<\/p>\n
Dissenter Asada noted that as the core inflation rate was below 2%, he was of the view that the economic situation may not be strong, and instead advocated for a hold. Core inflation for August stood at 1.7%, down from 1.8% in July. <\/p>\n
Sato also said current economic and price developments did not appear to have substantially accelerated compared to before. <\/p>\n
Stock Chart IconStock chart icon![\"hide](\"https:\/\/static-redesign.cnbcfm.com\/dist\/a54b41835a8b60db28c2.svg\")
<\/p>\n
The U.S. has been vocal about Japan continuing its rate-hiking cycle, pressuring Takaichi’s preference for an easy monetary policy and an expansionary fiscal policy.<\/p>\n
Most recently, Treasury Secretary Scott Bessent\u00a0told BOJ Governor Kazuo Ueda<\/a>\u00a0to take “decisive market and monetary steps” at the G20 finance ministers and central bank governors meeting earlier this month.<\/p>\n","protected":false},"excerpt":{"rendered":"TOKYO, JAPAN – SEPTEMBER 16: The Bank of Japan headquarters stand at dusk on September 14, 2026 in…\n","protected":false},"author":2,"featured_media":851750,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27],"tags":[295193,8073,4592,28,122,8712,3471,1052,17205,21],"class_list":["post-851749","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-lco26x","tag-asia-economy","tag-bonds","tag-business","tag-business-news","tag-central-banking","tag-japan","tag-prices","tag-tokyo","tag-united-states"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/851749","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=851749"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/851749\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/851750"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=851749"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=851749"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=851749"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}