Japan’s central bank keeps interest rates unchanged

Bank of Japan kept interest rates unchanged on Friday, sticking to its view that the economy is still on track for a moderate recovery.

The bank held its benchmark interest rate at around 0.25 percent, as widely expected, Kyodo News reported.

The bank said in a statement after a two-day meeting that Japan’s economy is recovering moderately, although there is some weakness in some areas.

The BOJ ended its negative interest rate policy in March and raised its short-term interest rate to 0.25 percent in July, citing an increased likelihood of inflation achieving its 2 percent target in a sustainable manner.

The BOJ’s decision to hold interest rates came despite the Federal Reserve’s first major rate cut in more than four years, cutting interest rates by 50 basis points.

Japanese authorities are monitoring the impact of the decision on the dollar’s movement against the local currency, the yen, and Japan’s economic outlook.