Bank of Japan Holds Interest Rates at 0.5% - عرب فايف

In a widely expected move, the Bank of Japan kept interest rates unchanged during its regular policy meeting on Thursday, while lowering its economic growth forecasts for fiscal years 2025 and 2026 amid rising uncertainty linked to U.S. tariffs and their potential impact on the global economy.

The central bank unanimously decided to maintain the short-term interest rate at 0.5%, continuing its cautious, accommodative approach in light of weak domestic economic momentum and growing global risks.

Although the bank remains committed to its 2% inflation target, it noted that trade challenges may only delay—rather than derail—the path toward monetary tightening.

In its quarterly report released after the policy meeting, the Bank of Japan downgraded its growth outlook for fiscal years 2025 and 2026, citing signs of slowing external demand and the impact of increasing U.S. trade tariffs on Japanese exports.