Bank of Japan holds 1.25% rate as inflation reaches 2%
Business
The Bank of Japan is set to keep its interest rate at 1.25% this Friday, just as it celebrates finally reaching its 2% inflation target after years of battling falling prices.
Instead of trying to push prices up, the focus now shifts to keeping things steady while the economy faces some ongoing challenges.
Analysts expect BoJ December 1.5% hike
With this big milestone likely to be reached on Friday, all eyes are on what comes next. Analysts expect a rate hike could happen as soon as December.
Analysts are betting on a move to 1.5%. The bank is also expected to bump up its inflation forecast, thanks to stronger wage growth and steady price expectations.
It's a careful balancing act between keeping inflation in check and supporting Japan's recovery in a tricky global economy.