Bank of Japan holds interest rates but warns of 'high uncertainties' in outlook

Rate at 0.25%

Sorin Dojan
clock • 2 min read

The Bank of Japan has decided to keep interest rates steady, citing a moderate recovery in the country's economy despite some observed weaknesses.

Following a two-day monetary policy meeting, BoJ policymakers today (20 September) voted unanimously to maintain the uncollateralised overnight call rate at 0.25%. However, the central bank also expressed caution about "high uncertainties" surrounding Japan's economic activity and prices, including developments in overseas economic activity and prices, changes in commodity prices, and domestic firms' wage- and price-setting behaviour. "Under these circumstances, it is necessary to pay due attention to developments in financial and foreign exchange markets and their impact on Japan's e...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Economics

Early Powell departure could be an 'unexpected gift' for EMs

Early Powell departure could be an 'unexpected gift' for EMs

Trump claims he will replace chair sooner

Eve Maddock-Jones
clock 01 July 2025 • 3 min read
BoE's Andrew Bailey: Pick-up in inflation makes outlook uncertain

BoE's Andrew Bailey: Pick-up in inflation makes outlook uncertain

UK inflation at 3.4%

clock 27 June 2025 • 2 min read
Jerome Powell warns of long term inflation if Trump settles on higher tariffs indefinitely

Jerome Powell warns of long term inflation if Trump settles on higher tariffs indefinitely

Policies' economic impacts ‘uncertain’

Eve Maddock-Jones
clock 25 June 2025 • 3 min read
Trustpilot