BoJ Holds Interest Rate Steady Amid Moderate Growth Outlook

The Bank of Japan (BoJ) has decided to hold its key interest rate steady at 1.00%, aligning with market expectations, BoJ Governor Kazuo Ueda explained in a press conference.

Ueda noted that the Japanese economy is expected to continue growing moderately, with projected real GDP growth remaining more or less unchanged from April's projection.

However, he also warned that there are risks of underlying CPI inflation deviating upward to a level above 2%, which could lead to price instability and negatively impact the economy.

The BoJ will continue to raise interest rates in response to economic and price developments, while considering the timing and pace of rate hikes.