BOJ Keeps Rates Steady Amid Global Uncertainty

The Bank of Japan (BOJ) has left interest rates unchanged at 1.0% in a move that was widely anticipated by economists and financial analysts.

In its latest policy decision, the BOJ cited continued caution over the Middle East conflict and a weak yen as reasons for holding off on further rate hikes.

However, the central bank did trim its core consumer price index inflation forecast, predicting that prices will trend between 2.4% and 2.7% in fiscal 2026, down from its previous estimate of 2.8% to 3.0%.

The BOJ also slightly hiked its gross domestic product (GDP) outlook for the current year, projecting growth of 0.6% to 0.7%, up from a previous forecast of 0.4% to 0.7%.