BOJ Stands Pat, Boosts Growth Outlook Amid Economic Recovery

The Bank of Japan (BOJ) has decided to maintain its monetary policy unchanged while raising its gross domestic product growth outlook for fiscal 2026. At a two-day meeting, the BOJ's Policy Board voted eight to one to keep the unsecured overnight call rate at around 1%.

In its new quarterly Outlook for Economic Activity and Prices report, the Japanese central bank raised its growth forecast for Japan's real GDP in fiscal 2026 to 0.6% from 0.5%. The BOJ also increased its growth projection for fiscal 2027 to 0.8%, while keeping it at 0.8% for fiscal 2028.

However, the BOJ cut its growth estimate for Japan's core consumer price index in fiscal 2026 to 2.5% from 2.8%. The decision aims to support economic recovery and inflation targeting.