Financial News: Bank Of Japan Holds Key Rate; Raises Inflation

Bank Of Japan Holds Key Rate; Raises Inflation Forecast

07/31/2025 - 00:43:00 (RTTNews)

(RTTNews) - The Bank of Japan maintained its interest rate on Thursday and lifted its inflation outlook citing the rise in food prices.

The policy board unanimously decided to hold the uncollateralized overnight call rate to remain at around 0.5 percent.

Previously, the bank had raised the benchmark rate to the current level from 0.25 percent in January. In the Outlook for Economic Activity and Prices, the bank raised its inflation outlook due to the rise in food prices. For the fiscal 2025, inflation forecast was lifted to 2.7 percent from 2.2 percent.

Inflation forecast for the fiscal 2026 was raised marginally to 1.8 percent from 1.7 percent and that for fiscal 2027 to 2.0 percent from 1.9 percent. Economic growth projection for the fiscal 2025 was lifted to 0.6 percent from 0.5 percent, while the outlook for the fiscal 2026 and 2027 was retained at 0.7 percent and 1.0 percent, respectively.

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