Bank of Japan keeps rates unchanged and accelerates balance sheet reduction. Is the policy objective beginning to shift?

On October 30, the Bank of Japan concluded its two-day monetary policy meeting and decided to keep the policy rate at 1.25%, which remains the highest level since 1995. At its September policy meeting, the BOJ approved a rate hike by a 7-2 vote, with the dissenting votes at that time mainly coming from board members favoring further tightening. The vote on this BOJ decision was 8 to 1, with one board member advocating raising the policy rate to 1.5%, but the proposal was rejected by the committee.