Japan keeps interest rates steady at 0.25%

BoJ says Japanese economy likely to keep growing but there are still uncertainties

By Gokhan Ergocun

ISTANBUL (AA) - The Bank of Japan decided to keep its policy interest rate steady at 0.25%, according to an official statement on Thursday.

The Japanese economy is likely to keep growing at a pace above its potential growth rate, the BoJ said.

The bank said annual inflation is likely to be at around 2.5% for fiscal 2024 and then around 2% for fiscal 2025 and 2026.

"Concerning risks to the outlook, there remain high uncertainties surrounding Japan's economic activity and prices, including developments in overseas economic activity and prices, developments in commodity prices, and domestic firms' wage- and price-setting behavior," it added.

The bank had been keeping the rate at minus 0.1% since 2015 but decided to increase the rate to 0.1% at its March meeting and then raised it to 0.25% in July, its highest level since end-2008.

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