The Bank of Japan chose to keep interest rates unchanged.

Interest Rates Remain Constant

The Bank of Japan (BOJ) decided to keep the key policy interest rate at 0.75%, in line with general market expectations. This decision particularly sets the stage for further rate hikes in light of hawkish inflation signals.

Growth and Inflation in a Balanced State

The bank's board evaluates that the risks of growth and inflation in the Japanese economy are approximately balanced. This situation is interpreted through the inflationary effects of a weak yen and rising import costs.

Growth Forecasts Increased

Although the BOJ has increased its growth forecasts for both the 2025 and 2026 fiscal years, it continues to maintain its hawkish inflation forecasts. This situation indicates a likelihood of further rate increases due to rising borrowing costs.

A Cautious Approach for the Future

The BOJ takes into account the risks brought by a weak yen and potential increases in core consumer prices. These factors remain among the most important indicators determining the timing of interest rate hikes.