The Bank of Japan (BoJ) left its benchmark interest rate unchanged at 0.50% on Thursday, maintaining its policy stance for the sixth consecutive meeting. The decision was widely anticipated by markets, following the central bank’s earlier 25 bps hike in January, its first major step away from ultra-loose policy in decades.
This meeting marked the first monetary policy review under new Prime Minister Sanae Takaichi, known for her pro-stimulus stance. The BoJ’s move signals continued caution amid fragile domestic demand, wage growth concerns, and ongoing inflation uncertainty in Japan’s post-deflation environment.
Analysts will watch for future policy signals as the BoJ balances inflation stabilization with supporting economic momentum under the new administration.
