The Bank of Japan held short-term interest rates on Thursday, but signalled that further rises were still on the horizon as prices continued to climb.
The unanimous decision from the Japanese central bank’s monetary policy board to maintain its target rate around 0.25 per cent was widely expected, with some analysts now projecting a rate increase as soon as the BoJ’s monetary policy meeting in December.
In a press conference, BoJ governor Kazuo Ueda confirmed that the bank would not be deterred by recent political turmoil in Japan, and would press ahead with raising rates if wages and prices continued to move in line with projections.
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