2024年09月20日

BOJ Keeps Policy Rate Unchanged—Cautious Stability in the Investment Real Estate Market

The Bank of Japan held its monetary policy meeting on September 19th and 20th, unanimously deciding to keep the policy rate at the current 0.25%. As a result, an additional rate hike following the one in July was postponed, allowing more time to assess the current economic and price trends.

This decision is also seen as a factor providing a certain level of stability to the investment real estate market. For investors using apartment loans and other forms of financing, the avoidance of a sharp rise in interest rates for the time being can be considered a relief. However, as future economic conditions and BOJ policy developments remain uncertain, careful judgment is still required.

The meeting was held amidst shifting domestic and international political and economic conditions, such as the Liberal Democratic Party leadership election and the U.S. Federal Reserve’s rate cut. Within the BOJ, the prevailing view was that there was no need to rush into further rate hikes at this time. Nevertheless, a cautious approach to future developments should be maintained.

BOJ Governor Ueda has indicated that, if prices and the economy progress as the BOJ forecasts, further rate hikes remain on the table. Therefore, for real estate investors, it is important to take advantage of the current low-interest environment while preparing for potential interest rate increases in the future. It is recommended to continue monitoring future developments closely.