'Fog is clearing,' BOJ's Ueda says as bank inches toward rate hike option

Japan central bank takes wait-and-see stance ahead of U.S. elections

Bank of Japan led by Gov. Kazuo Ueda kept largely intact its three-year inflation projections, indicating that the economy is moving according to the BOJ's forecast. (Photo by Nanami Sato)

MITSURU OBE and CHIHIRO ISHIKAWA, Nikkei staff writers

October 31, 2024 12:01 JST

Updated on October 31, 2024 19:23 JST

TOKYO -- The Bank of Japan kept its policy rate unchanged at 0.25% on Thursday amid heightened political uncertainties, but its governor projected optimism about the global and domestic economy and left the possibility open for a December rate hike.

"The fog is gradually clearing up," Gov. Kazuo Ueda said during a press conference after a two-day policy meeting, referring to receding concerns about the U.S. employment situation. Such concerns were cited by the BOJ last month as a reason for delaying policy normalization.