The Bank of Japan kept its policy rate unchanged at 1% on Friday in an 8-1 vote, matching expectations. The decision came one month after the central bank raised its benchmark rate to the highest level since 1995. Board member Hajime Takata dissented and backed a 25 basis point increase, arguing that conditions had entered a new phase and that the BOJ should respond flexibly to upside price risks and changes in overseas financial conditions. The central bank said it will continue to raise rates in line with developments in the economy, prices, and financial conditions. It also said underlying inflation is close to 2%, financial conditions remain accommodative, and both major downside risks to economic activity and major upside risks to prices have eased. In its latest outlook, the BOJ lowered its fiscal 2026 core CPI forecast to 2.5% from 2.8% and raised its fiscal 2026 GDP growth forecast to 0.6% from 0.5%, according to Jin10, as cited by BlockBeats.
The Bank of Japan kept its policy rate unchanged at 1% on Friday in an 8-1 vote, in line with expectations.
The move followed last month’s rate increase, which lifted the benchmark rate to its highest level since 1995. Board member Hajime Takata dissented and supported a 25 basis point hike. Takata said conditions had entered a new phase and that the BOJ needed a flexible approach to deal with upside price risks and shifts in overseas financial conditions.
The BOJ said it will continue raising rates based on developments in the economy, prices, and financial conditions. It added that underlying inflation is close to 2%, financial conditions remain accommodative, and both major downside risks to economic activity and major upside risks to prices have declined.
In its latest economic projections, the BOJ cut its fiscal 2026 core CPI forecast to 2.5% from 2.8% and lifted its fiscal 2026 GDP growth forecast to 0.6% from 0.5%.
The update was carried by Jin10, according to BlockBeats.
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