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BOJ Summary Shows Majority Ready to Raise Rates If Wage Momentum Persists

Governor Kazuo Ueda is waiting for more data on company pay before adjusting policy.

Bank of Japan Governor Kazuo Ueda attends a press conference after a BOJ policy meeting in Tokyo, Japan, October 30, 2025. REUTERS/Kim Kyung-Hoon

Overview

  • The October 30 meeting left the policy rate at 0.5%, with two board members dissenting in favor of a hike to 0.75%.
  • Eight of 13 opinions from the nine-member board called for a near-term increase or set conditions for one, according to the summary.
  • Several policymakers emphasized that sustained corporate wage-setting must be confirmed before tightening further.
  • One opinion said a hike is likely if global markets avoid negative shocks and firms keep raising pay, with higher U.S. tariffs at 15% noted as a pressure point.
  • Market commentary points to a potential move as early as December 2025 or early 2026, and traders are watching wage data and board remarks for timing cues.