US EditionBOJ keeps rates steady, revises up inflation forecast
JAPAN, JUL 31 – The Bank of Japan raised its inflation forecast to 2.7% for fiscal 2025 while keeping rates at 0.5%, signaling possible further hikes amid wage growth and trade deal optimism.
- On Thursday, the Bank of Japan kept interest rates steady at 0.5% by unanimous vote, raising its inflation forecast for the current fiscal year.
- About a week after the U.S.-Japan trade deal, tariffs on U.S.-bound automobile shipments were lowered, easing economic uncertainty.
- Data from the BOJ’s latest projections show the inflation forecast was raised to 2.8% from 2.3% and economic growth expectations edged up to 0.6% from 0.5%.
- Following the BOJ decision, markets included the Japanese yen strengthening approximately 1.24% and government bond yields rising on expectations of tighter policy.
- Looking ahead, Masato Koike of Sompo Institute Plus is open to a potential policy shift later this year, while Marcel Thieliant of Capital Economics forecasts another 0.25% rate hike in October.
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ThePatriotLight - BOJ keeps rates unchanged and lifts price view after U.S. trade deal
ThePatriotLight - The Bank of Japan held its benchmark interest rate steady and raised its inflation outlook more than expected in a sign it may be closer to a rate hike, while continuing to warn that it’s still assessing the impact of U.S. President Donald Trump’s tariffs.The BOJ kept the overnight call rate at 0.5% at the end of a two-day policy meeting in a unanimous vote, according to a statement Thursday. All 56 surveyed economists forecast…
Coverage Details
Total News Sources28
Leaning Left4Leaning Right3Center6Last UpdatedBias Distribution46% Center
Bias Distribution
- 46% of the sources are Center
46% Center
L 31%
C 46%
R 23%
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