Bank of Japan keeps policy rate unchanged
The Bank of Japan maintained its policy interest rate at 0.5% on Thursday, in line with expectations. The bank's outlook indicates moderate economic growth, with core inflation losing momentum due to a slowing economy, while long-term inflation expectations are expected to rise gradually. Exports and production remain stable despite US tariff increases.
- Asia
- Anadolu Agency
- Published Date: 12:13 | 01 May 2025
The Bank of Japan kept its policy interest rate unchanged on Thursday at 0.5% in line with market expectations.
The bank's Economic Activity and Price Outlook report said Japan is expected to record moderate economic growth.
It stressed that core inflation will lose momentum mainly due to the slowdown in the economy, and that with the increase in economic growth, medium- and long-term inflation expectations will rise.
The increase in the core inflation is expected to accelerate gradually.
The report said exports and production remained almost stable as a trend despite some front-loading due to the increase in US tariffs.