Bank of Japan Holds Rates, Signals Underlying Inflation Reached 2% Target

The Bank of Japan maintained its benchmark interest rate at 1.25% following its two-day meeting, but indicated for the first time that underlying inflation has reached its 2% target. This milestone opens the door for a potential rate hike as early as December. The central bank also announced plans to significantly increase the pace of its Exchange-Traded Fund (ETF) sales starting in January.