Bank of Japan keeps rates unchanged, raises growth and inflation forecasts

Tokyo: The Bank of Japan kept interest rates unchanged at its regular policy meeting Friday, while raising its outlook for economic growth and inflation.

The central bank decided to maintain the short-term interest rate at 0.75 percent, in a vote of eight members in favor and one dissenting, in line with market expectations.

Last month, the Bank of Japan raised its key policy rate to the highest level in 30 years, but the move failed to support the yen, which has remained under pressure since October 2025, falling by more than 4 percent amid fiscal concerns.

The decision to hold rates signals the bank’s readiness to continue gradually increasing borrowing costs, which remain relatively low.