BOJ Stands Pat as Expected, Two Officials Propose Rate Hikes

On Thursday, the Bank of Japan maintained its benchmark interest rate at 0.5%, marking the sixth consecutive meeting of standing pat, in line with market expectations.

The BOJ's rate decision was passed by a 7-2 vote, with board members Hajime Takata and Naoki Tamura proposing to raise the short-term interest rate target from 0.50% to 0.75%.

The BOJ stated that, given the high uncertainty regarding trade policies and their impact on the economy, it is crucial to carefully examine whether its forecasts can be achieved without any preconceived notions. If economic and price developments align with its projections, accompanied by improvements in the economy and prices, it will continue to raise the policy interest rate.