BOJ Keeps Interest Rate Unchanged Amid Rising Inflation

The Bank of Japan (BoJ) has kept its main interest rate unchanged at 1.0 percent, despite pressure to tighten monetary policy as inflation rises and the yen weakens.

This decision was widely expected by markets, with the BoJ citing a slightly improved economic growth outlook for this year, estimated at 0.6 percent expansion.

The bank also revised its inflation forecast to 2.5 percent for the current fiscal year, down from its previous estimate of 2.8 percent.

The yen weakened on the decision, which came a day after it rallied against the dollar, fueling speculation about possible intervention in currency markets by Japanese authorities.