BOJ Holds Rate at 1.25% in 8-1 Vote, Raises FY2027 Inflation Forecast to 2.6%

The Bank of Japan kept its short-term policy rate at 1.25% in an 8-1 vote, said underlying inflation is broadly in line with its 2% target, raised its fiscal 2027 core CPI forecast to 2.6% and decided to speed up sales of its ETF holdings.