Bank of Japan Keeps Interest Rate Target Unchanged at Around 0.5%

The Bank of Japan decided to keep its benchmark interest rate unchanged at around 0.5% for the fourth consecutive time, signaling caution despite the recent trade agreement with the United States.

National Broadcasting Corporation (HNK) quoted the central bank as saying it intends to monitor economic data and prices, noting the high level of uncertainty even after the trade agreement.

The Bank of Japan also announced its economic forecasts through fiscal 2025. Its median forecast for annual economic growth is 0.6% in real terms compared to the previous fiscal year, up from its April forecast of 0.5%.

The central bank expects consumer prices, excluding fresh food, to rise 2.7% this year, compared to its April forecast of 2.2%. The bank notes that this forecast reflects continued rises in the prices of rice and some other food items.