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...

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