The Bank of Japan (BOJ) decided to keep interest rates unchanged on Thursday and reiterated its forecast that inflation will persist near the 2% target in the upcoming years, indicating its preparedness to gradually retract its extensive monetary support measures.
The nine-member board unanimously voted to maintain the BOJ’s short-term policy rate at 0.25%, in line with market expectations.
The central bank emphasized the need for caution in its quarterly outlook report, highlighting the importance of monitoring international economic climates, particularly the U.S. economy and financial market dynamics.
Meanwhile, BOJ Governor Kazuo Ueda is scheduled to address a press conference at 3:30 PM (0630 GMT) to elaborate on the policy decision.
