The Bank of Japan (BOJ) said on Thursday that it will leave the policy interest rate unchanged at around 0.5 percent following the conclusion of a two-day monetary policy meeting, which marks the fourth consecutive times the central bank has been sitting tight since raising the rate from 0.25 percent to 0.5 percent in January this year.
Following the January rate increase, the central bank decided to keep the rate unchanged in March, citing concerns that U.S. tariff policies could increase global economic uncertainty, while the monetary policy meetings in May and June continued to maintain this interest rate level.
The central bank also raised its forecasts for the year-on-year increase in the country's core consumer price index, excluding fresh food, for 2025 from the previous 2.2 percent to 2.7 percent, according to its quarterly released Outlook for Economic Activity and Prices on Thursday.
At a press conference held Thursday afternoon, Bank of Japan Governor Kazuo Ueda said that the inflation rate in Japan, excluding various temporary factors, is strengthening, while the possibility of returning to deflation has decreased.
The central bank will closely monitor various factors affecting the wage and price increase cycle and will adjust monetary policy as needed, including raising the interest rate at an appropriate time, he stressed.
Bank of Japan keeps policy interest rate unchanged
