Tokyo: The Bank of Japan kept its policy interest rate unchanged on Thursday at 0.5% in line with market expectations. The decision comes as the bank assesses the current economic conditions and future outlook for Japan’s economy.
According to Anadolu Agency, the bank’s Economic Activity and Price Outlook report highlighted that Japan is anticipated to experience moderate economic growth. The report emphasized that while core inflation is expected to lose momentum due to the economic slowdown, medium- and long-term inflation expectations are likely to rise with increased economic growth.
Furthermore, the increase in core inflation is projected to accelerate gradually. The report also noted that exports and production have remained largely stable, even though there has been some front-loading attributed to the rise in US tariffs.