BoJ Keeps Rates Steady, Lowers Inflation Forecast

The Bank of Japan (BoJ) maintained its policy interest rate at 1% on Friday, in line with market expectations.

In a two-day monetary policy meeting, an 8-1 majority approved keeping the rate unchanged.

Board member Hajime Takata voted for a rate increase, citing inflation risks from external demand shocks and global financial conditions.

The BoJ lowered its fiscal 2026 core inflation forecast to 2.3%-2.7% from 2.8%-3%, citing higher crude oil prices linked to Middle East developments as a key factor.