The Bank of Japan has opted to keep its monetary policy unchanged. It wrapped up its two-day meeting on Wednesday.
The BOJ says it will continue to target a short-term rate of around half a percent. Policymakers apparently took into account possible risks stemming from US President Donald Trump's tariff policies.
The BOJ said in a statement, "There remain high uncertainties surrounding Japan's economic activity and prices." The bank cited "the evolving situation regarding trade and other policies", "developments in overseas economic activity" and commodity prices as risk factors.
BOJ policymakers also apparently believe more time is needed to gauge the effects of their January rate hike.
Current price trends in Japan were another factor in the discussions. The BOJ maintains a 2 percent inflation target. But the latest overall consumer price index, including fresh food, was 4 percent, mainly due to a rise in rice prices. Even excluding fresh items, the index still exceeded 3 percent.
The BOJ says rice costs will continue to drive up consumer prices. But it says the basic inflation rate related to wage hikes will move at a level consistent with the 2 percent target as early as the second half of fiscal 2025.
The BOJ says it will continue to target a short-term rate of around half a percent. Policymakers apparently took into account possible risks stemming from US President Donald Trump's tariff policies.
The BOJ said in a statement, "There remain high uncertainties surrounding Japan's economic activity and prices." The bank cited "the evolving situation regarding trade and other policies", "developments in overseas economic activity" and commodity prices as risk factors.
BOJ policymakers also apparently believe more time is needed to gauge the effects of their January rate hike.
Current price trends in Japan were another factor in the discussions. The BOJ maintains a 2 percent inflation target. But the latest overall consumer price index, including fresh food, was 4 percent, mainly due to a rise in rice prices. Even excluding fresh items, the index still exceeded 3 percent.
The BOJ says rice costs will continue to drive up consumer prices. But it says the basic inflation rate related to wage hikes will move at a level consistent with the 2 percent target as early as the second half of fiscal 2025.
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Summary
The Bank of Japan (BOJ) has maintained its monetary policy, targeting a short-term rate of around half a percent. Policymakers consider potential risks from US tariff policies and economic uncertainties. They also need more time to evaluate the effects of their January rate hike. Current inflation
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ID: db2545ce-59f1-48de-b088-03f975c65731
Category ID: nhk
URL: https://www3.nhk.or.jp/nhkworld/en/news/20250319_B3A/
Created: 2025/03/21 07:00
Updated: 2025/12/08 05:24
Last Read: 2025/03/21 07:25