Bank of Japan holds rates at 1.25%, says underlying inflation is generally consistent with 2% target for first time
Split board, upgraded forecasts as economist calls it a 'hawkish hold' and sees more hikes ahead
The Bank of Japan held its policy rate at 1.25%, its highest since 1995, and for the first time since adopting a 2% inflation target in 2013 declared that underlying inflation is "generally consistent" with that target. The decision was split 8-1, with board member Hajime Takata dissenting in favour of a hike to 1.5%. The central bank also upgraded its inflation forecasts and flagged that price pressures could push inflation above target.