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Bank of Japan keeps rates steady

  • On Thursday, the Bank of Japan kept benchmark interest rates steady at 0.5% in its first meeting after Sanae Takaichi, Prime Minister, took power earlier this month as inflation stayed above the 2% target for 41 months.
  • Amid earlier rate changes, the Bank of Japan lifted its main interest rate on July 31, reflecting Takaichi's support for Abenomics and loose monetary policy.
  • Exports contracted for four straight months before rebounding, while the July 31 rate increase was only the second in 17 years, showing exceptional prior tightening by the Bank of Japan.
  • The U.S. Treasury emphasised coordination by saying Scott Bessent, U.S. Treasury Secretary, met Satsuki Katayama, Finance Minister, and highlighted the need for sound policy and communication.
  • Finance Minister Satsuki Katayama warned the yen's real value is about 120-130 against the dollar, about 26% stronger than around 152, while the 'Takaichi trade' weakened the yen and boosted the Nikkei 225.
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Lean Right

In the quarterly report on economic projections, the Bank of Japan, despite changing economic growth projections, maintained the remaining projections and warned against economic risks.

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Center

Bank of Japan keeps interest rates unchanged

The Bank of Japan kept interest rates on hold Thursday at 0.5 percent, warning of lingering economic "high uncertainties" linked to US trade tariffs.

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NHK World broke the news in Tokyo, Japan on Wednesday, October 29, 2025.
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