Bank of Japan says inflation has reached its 2% target, but holds interest rates

Summary

The Bank of Japan said on Friday that inflation had hit its 2% target, more than 13 years after it adopted the goal to pull the economy out of deflation. It held interest rates unchanged for now, while expectations mount for a rate increase in December. The Financial Times reported that the central bank held rates and guided to further tightening, saying inflationary dynamics had finally taken root in the Japanese economy.

Timeline

1. Financial Times

   30 Oct 2026, 05:05 UTCSource ↗

   Reports that the Bank of Japan says its 2% inflation target has been reached after decades of deflation, and that it held interest rates as expectations mount for a December increase.

2. Euronews

   30 Oct 2026, 05:46 UTCSource ↗

   Reports that the Bank of Japan said on Friday that inflation had hit its 2% target, more than 13 years after adopting the goal to pull the economy out of deflation, but held off hiking interest rates for now.

3. Financial Times

   30 Oct 2026, 08:34 UTCSource ↗

   Reports that the Bank of Japan held rates and guided to further tightening, saying inflationary dynamics have finally taken root in the Japanese economy.