Global Market: BOJ seen nearing 2% inflation target as markets eye December rate hike

What happened: The BOJ is seen nearing its 2% underlying inflation target, with markets expecting a December rate hike. Its October 29-30 meeting and quarterly outlook are in focus. Key numbers: 2% inflation target; key rate at a 31-year high; July projection saw target reached between October 2026 and March 2028; October 29-30 policy meeting. Why it matters: A signal that inflation has broadly reached target would reinforce December hike expectations and show the BOJ will raise rates at short intervals if price pressures continue.

The BOJ is seen nearing its 2% underlying inflation target, with markets expecting a December rate hike. Its October 29-30 meeting and quarterly outlook are in focus.

A signal that inflation has broadly reached target would reinforce December hike expectations and show the BOJ will raise rates at short intervals if price pressures continue.