The Bank of Japan decided at its meeting that concluded this morning, Thursday, October 30, to maintain its monetary policy and interest rates unchanged. A majority of 7-2 voted to keep the interest rate at 0.50%, as expected, while two members voted to raise the rate by 25 basis points.

The Bank of Japan’s quarterly outlook report showed the bank raising its growth forecast to 0.7% this year, compared to 0.6% in its July forecast. It maintained the forecast at 0.7% for next year and 1% for 2027, unchanged from July.

Meanwhile, the bank maintained its forecast for core inflation, excluding food prices, at 2.7% this year, 1.8% in 2026, and 2% in 2027. It also maintains its forecast for core inflation, excluding food and energy prices, at 2.8% this year and 2% next year, compared to 1.9% in its July forecast, and 2% in 2027.