BOJ Signals Caution on Future Rate Hikes Amid Market Volatility

Bank of Japan policymakers stress the need to closely monitor economic uncertainties before making further adjustments to interest rates.

BOJ board members emphasized the importance of clear communication with markets to avoid surprises, following the July rate hike that caused significant market turmoil.
The U.S. Federal Reserve's recent substantial rate cut has heightened concerns about the U.S. economic outlook, influencing BOJ's cautious stance.
Some policymakers expressed the need to wait for the right timing for future rate hikes to avoid suggesting a shift to aggressive monetary tightening.
The BOJ kept its short-term interest rate steady at 0.25% during the September meeting, indicating no rush to raise borrowing costs further.
Economic data shows a moderate recovery in Japan, but global economic uncertainties and market instability are key factors in BOJ's cautious approach.