Analysts react to BOJ decision to keep rates steady

Oct 30 (Reuters) The Bank of Japan kept interest rates steady on Friday, but revised up its inflation forecast and stressed anew its readiness to continue pushing up borrowing costs to forestall mounting inflation risks. The central bank decided to maintain its short-term policy target at 1.25% by an 8-1 vote. Board member Hajime Takata dissented to the decision. Governor Kazuo Ueda will hold ​a news conference at 3:30 p.m. (0630 GMT) to explain the policy decision. COMMENTS MASATO KOIKE, SENIOR ECONOMIST, SOMPO INSTITUTE PLUS, TOKYO: The ETF was ‌the surprise. I was a little taken aback by that, but its weight is still small, so while it may have some impact on today s stock market, it is something that can be absorbed over the medium to long term without major disruption. On prices, the BOJ s language that interest rates are broadly consistent with its outlook, together with the upgraded CPI forecasts in the Outlook Report, was largely as expected. But it allowed the BOJ to stren