BoJ likely to declare 2% inflation target reached at October meeting, BofA says
According to BofA Securities, the Bank of Japan may say its 2% inflation target has been met at the end-October meeting, with rate hikes still on the table.
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what happened
Bank of Japan is likely to declare that its 2% inflation target has been reached at its monetary policy meeting at the end of October, BofA Securities said in a research note.
BofA expects little change in the central bank's assessment of economic and price conditions, its outlook and risks. Growth forecasts are likely to stay broadly unchanged, while the board may slightly raise its median core CPI forecast for fiscal 2027.
The board is likely to reiterate that it will keep raising rates and reducing monetary accommodation. BofA says the timing and pace of that process will still depend on the Middle East, AI-related demand and foreign exchange.
why it matters
A declaration that the inflation target has been met would signal a shift toward further tightening at the BoJ. For the yen and Japanese government bonds, this points to expectations of higher rates, while exporters and Asian equity indices may feel the impact through funding conditions and currency moves.
market impact
Yen and JGBs: expectations of further BoJ tightening support the yen and push JGB yields higher
tags
instruments
sources
- BOJ Likely to Declare It Achieved 2% Inflation Target in Upcoming Meeting — Market Talk, 23 October 2026 at 03:48 UTC
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