BOJ Set to Hold Steady Amid Inflation Fears

The Bank of Japan (BOJ) is likely to hold interest rates steady when it meets on Thursday and Friday, according to officials. This decision comes after the central bank raised its policy rate to a 31-year high of 1% last month.

Some BOJ officials believe that raising rates again at an early date would be desirable, as this would prevent the central bank from falling behind in fighting inflation amid rising producer prices.

BOJ policymakers are expected to discuss increasing their outlook for Japan's economic growth for fiscal 2026, which ends next March, from 0.5%. Despite lingering energy supply concerns due to the conflict in the Middle East, downside risks to the economy have diminished thanks to progress in procuring alternative sources.