The Bank of Japan kept its key interest rate steady as anticipated, while suggesting that underlying inflation has at last reached its 2% target, which could clear the path for a rate increase in December.

Following a two-day meeting that concluded Friday, the BOJ decided to maintain its policy rate at 1.25%, per its official statement. Every economist surveyed by Bloomberg had expected this result.

The decision came through an 8-1 vote, with Hajime Takata casting the only opposing vote. The BOJ additionally revealed a shift in its ETF selling strategy, stating it will target an annual sales pace of approximately 860 billion yen.

The BOJ is the final of three major central banks to hold meetings this week, joining the Federal Reserve and European Central Bank in leaving rates unchanged. Just last month, all three had raised rates simultaneously for the first time.

For the BOJ, raising rates in consecutive meetings would have been unprecedented in this century and might have unsettled markets. Japan's benchmark rate already sits at a 31-year peak, though it remains low relative to other Group of Seven nations.

Attention now shifts to Governor Kazuo Ueda's press conference scheduled for around 3:30 p.m. local time. Investors will be watching carefully for hints of a possible December rate hike — and any indications of how high rates might climb in the current tightening phase.