The Bank of Japan (BoJ) kept its short-term policy rate unchanged at 1.25% in an 8-1 vote at its October meeting, in line with market expectations. The decision followed two consecutive 25bp hikes in June and September, leaving borrowing costs at their highest level since April 1995. Policymakers reiterated their intention to continue raising rates and adjust monetary accommodation as underlying CPI inflation remains broadly consistent with the 2% price stability target and financial conditions remain accommodative. Future adjustments will depend on developments in economic activity, prices, and financial conditions. Board member Hajime Takata dissented, arguing that underlying inflation had reached the 2% target and warranted faster rate increases toward the neutral level.