Bank of Japan holds rates at 1.25 percent, signals a December hike

Key Takeaways The Bank of Japan held its policy rate at 1.25 percent on October 30, an 8-1 vote with board member Hajime Takata dissenting in favor of a hike to 1.5 percent. The Bank declared victory in its nearly 14-year battle to push inflation to 2 percent, a turning point that shifts policy into a more hawkish, inflation-risk phase. In a surprise, it will roughly triple the pace of its exchange-traded fund sales from January, to about 860 billion yen ($5.5 billion) a year from 330 billion. Governor Kazuo Ueda said rates will be discussed at every meeting, including December; most analysts expect 1.5 percent by year-end, with a terminal path near 1.75 to 2 percent. The Bank of Japan left…