Bank of Japan holds rates steady even as inflation ticks up

What happened: The Bank of Japan kept its policy rate at 1.25% at the end of a two-day meeting on Friday, even as inflation rose above its target. Key numbers: Policy rate held at 1.25%. Core inflation at 2.1% year over year in September, matching analyst forecasts. Inflation excluding fresh food and energy at 2.4%. Why it matters: The BOJ's quarterly report indicated underlying inflation has reached the 2% target, and the bank said its job from now on is to anchor inflation at that level. Analysts and investors had widely expected no move, since the last rate increase was in September.

The Bank of Japan kept its policy rate at 1.25% at the end of a two-day meeting on Friday, even as inflation rose above its target.

The BOJ's quarterly report indicated underlying inflation has reached the 2% target, and the bank said its job from now on is to anchor inflation at that level. Analysts and investors had widely expected no move, since the last rate increase was in September.