BoJ Holds Fire: Japan Keeps Key Interest Rate Steady at 1.25%

The Bank of Japan (BoJ) left its benchmark interest rate unchanged at 1.25% on 30 October 2026, maintaining its existing policy stance amid ongoing assessment of domestic and global economic conditions. The decision keeps borrowing costs at the same level as the previous reading, signaling a pause as policymakers weigh inflation dynamics and growth prospects.

By holding the rate at 1.25%, the BoJ preserves a stable financing environment for businesses and households, while retaining flexibility for future moves should economic data shift. Markets and investors will now turn their focus to upcoming BoJ communications and economic releases for further clues on the central bank’s policy trajectory and its view on Japan’s recovery momentum and price stability.