Bank of Japan holds rates, raises inflation outlook

The Bank of Japan decided on Tuesday to keep its benchmark interest rate unchanged at 0.75% in a 6–3 majority vote, a move broadly in line with market expectations, News.Az reports, citing foreign media.

At the same time, the central bank revised its economic outlook, raising its core inflation forecast for fiscal 2026 from 1.9% to 2.8%, while lowering its growth projection from 1% to 0.5%.

The BoJ said Japan’s economy is expected to slow in fiscal 2026, noting that higher crude oil prices linked to tensions in the Middle East are likely to weigh on corporate profits and reduce households’ real income by worsening the terms of trade.

According to the bank, these pressures are expected to dampen overall economic activity despite ongoing monetary policy stability.

News.Az 

By Nijat Babayev