BOJ holds rates; Fed officials flag possible hikes
· Economy · Japan · United States
The Bank of Japan held rates and declared that its 2% underlying inflation target had been met for the first time since it set the target in 2013. Separately in the US, Federal Reserve Presidents Alberto Musalem and Lorie Logan said they will need to get back to hiking rates, offering the first insight into what Fed leaders see next. The comments underscore how central banks are reassessing easing paths as price pressures persist.
Why it matters：Both signals suggest the era of easy money is not returning quickly, which affects borrowing costs and currencies worldwide.
Key points
- BOJ held rates and declared its 2% target met for the first time
- Two Fed presidents said further hikes may be needed
- The comments came as price pressures persist