Bank Of Japan Keeps Key Rate Unchanged

(RTTNews) - The Bank of Japan left its interest rate unchanged on Thursday, and kept its real growth and inflation outlook more or less unchanged.

The policy board of the Bank of Japan decided, by a 7-2 majority vote, to hold the uncollateralized overnight call rate at around 0.5 percent.

The BoJ kept its inflation outlook unchanged for the current fiscal year and for the coming two years.

For the fiscal 2025, inflation is seen at 2.7 percent before easing to 1.8 percent in the next fiscal year. Inflation is projected to reach the 2 percent target in the fiscal 2027.

The BoJ noted that economic growth is set to rise, with overseas economies returning to a moderate growth path.

The bank slightly raised its growth forecast for the current fiscal year to 0.7 percent from 0.6 percent. Meanwhile, the outlook for the fiscal 2026 and 2027 was retained at 0.7 percent and 1.0 percent, respectively.