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BOJ Holds Rate at 1.25%, Boosts ETF Sales

By Drooid · Oct 30, 2026 · How we work

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Summary

Bank of Japan kept its benchmark rate at 1.25% on October 30, 2026.
Governor Kazuo Ueda said underlying inflation hit the 2% target for the first time since 2013.
The yen rose about 0.4% to roughly 157.12 per dollar after the decision.
BOJ will boost annual Exchange-Traded Fund sales to ¥860 billion starting January.

Summary

Prime Minister Sanae Takaichi’s cabinet is debating a temporary food consumption-tax cut and an income-linked benefit for low-income workers.
Wages rose 1.5% year-on-year in August, marking the eighth consecutive month of increase.
Unemployment fell to 2.4% in September, indicating a tight job market as wages rise.
Energy subsidies have cushioned CPI but will be phased out, exposing households to higher prices.

History

The Bank of Japan’s 2013 launch of quantitative-easing, buying ¥60-70 trillion of bonds annually under Governor Haruhiko Kuroda, set a 2 % inflation goal that defined Abenomics after Shinzo Abe’s 2012 election. Decades of low-rate policy and the 2024 exit from negative rates have left the BOJ holding rates near zero as consumer-price inflation again reaches the 2 % target, prompting the current cabinet to consider tax cuts.

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The Bank of Japan’s 2013 launch of quantitative-easing, buying ¥60-70 trillion of bonds annually under Governor Haruhiko Kuroda, set a 2 % inflation goal that defined Abenomics after Shinzo Abe’s 2012 election. Decades of low-rate policy and the 2024 exit from negative rates have left the BOJ holding rates near zero as consumer-price inflation again reaches the 2 % target, prompting the current cabinet to consider tax cuts.

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