Bank of Japan unlikely to take rates higher this week

At its policy meeting in September, the Bank of Japan raised its policy rate to 1.25% from 1%, taking Japan’s borrowing costs to the highest level since 1995. | Reuters

Oct 28, 2026

Analysts and investors are betting against a rate increase at the Bank of Japan’s policy board meeting this week, as the last move higher was just in September.

“A consecutive or large rate hike is an option when underlying inflation is overshooting or a sharp upside risk is growing. The current economic situation does not reflect these conditions,” said Tsuyoshi Ueno, executive research fellow at NLI Research Institute.

No one recently polled by Bloomberg expects a rate increase at the October meeting, which runs for two days and ends Friday. About 83% predict that the central bank will raise rates in December.

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