Overview
- At the September meeting, the nine‑member board kept the policy rate at 0.5% and voted down two proposals to raise it to 0.75%.
- Policymakers agreed real rates remain very low and outlined gradual increases if projections materialise, noting underlying inflation is not yet durably at 2% without sustained wage gains.
- Several members argued it would be prudent to wait for more hard data, citing corporate earnings, full‑year outlooks and the Tankan survey as key inputs.
- The board highlighted high uncertainty from global trade policy and overseas growth, while noting weak‑yen profit buffers have softened the tariff impact on exporters.
- Following an October hold, Governor Kazuo Ueda has indicated a rate hike could be possible as soon as December, contingent on incoming data.