Bank of Japan's economic outlook underpins expectations for another rate hike

The Bank of Japan kept its policy rate unchanged, in line with market expectations, while reiterating that it is on track to achieve its goals of stable inflation and economic growth. Most BOJ watchers were not surprised by Thursday's decision, as the BOJ governor had expressed more concerns about the increasingly uncertain global economic outlook long in advance. He also said the BOJ had time to analyze risk factors, suggesting that the bank will continue to tread carefully. The BOJ said in its quarterly outlook, also released on Thursday, that it expects inflation to remain around its 2% target for the next few years. The closely watched report will reinforce expectations that policymakers will soon raise interest rates again. (Jinshi)