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Bank of Japan holds interest rate at 1% and trims inflation outlook

· Business JPN

The Bank of Japan kept its benchmark interest rate at 1% on Thursday, voting 8-1 to maintain the level it reached after raising rates to a 31-year high in June. Board member Hajime Takata dissented, proposing an increase to 1.25%.

The central bank lowered its core inflation forecast for fiscal 2026 to 2.5% from 2.8% while upgrading its economic growth projection to 0.6%. The BOJ noted that U.S.-Iran tensions are expected to weigh on economic activity this fiscal year. A Reuters poll suggests another rate hike to 1.25% by year-end.

The yen weakened following the decision, reversing a sharp rally a day earlier when the dollar fell from above 163 to below 158 yen after Tokyo intervened in New York markets to support the currency, which had slumped to a 40-year low.

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The reporting this story is built on

cna.com.tw TWN 日銀利率按兵不動 小幅上修經濟成長展望 | 國際 | 中央社 CNAhandelsblatt.com DEU Geldpolitik: Japans Notenbank hält Zinsen stabil – Signal für Erhöhungenfinance.yahoo.com USA BoJ Holds Rates at 1%: Will Japan’s Yen Intervention Hold?antaranews.com IDN BOJ naikkan proyeksi ekonomi tahun fiskal 2026, suku bunga tetaprte.ie IRL Bank of Japan keeps main interest rate unchanged
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nikkei.com JPN 「不意打ち」介入で揺れる円、日銀は金利据え置き 市場はこうみる - 日本経済新聞adnkronos.com ITA BOJ Keeps Policy Unchanged, Ups GDP Growth Outlookfinanzen.ch CHE Bank Of Japan Maintains Key Rate

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