BOJ Holds Rates Steady Amid Inflation and Growth Concerns

The Bank of Japan (BOJ) left interest rates unchanged at 1.0% in its latest decision, as expected by economists.

The rate-setting board voted 8-1 to hold the benchmark interest rate at 1.0%, with Board Member Hajime Takata being the sole dissenter.

Takata called for another 25 basis point hike after a raise in June, but his view was not supported by the majority of the board.

The BOJ trimmed its core consumer price index (CPI) inflation forecast to between 2.4% and 2.7% in fiscal 2026, which is lower than its previous forecast of 2.8% to 3.0%.