Bank of Japan Holds Rate Steady While Raising 2026 Growth Forecast
The Bank of Japan left its policy rate at roughly 1% and upgraded its outlook for fiscal 2026, expecting slightly higher growth and lower inflation.
At a two-day policy meeting, the Bank of Japan decided to keep its benchmark interest rate unchanged at about 1 percent, after a recent hike to a 31-year high. In its quarterly outlook, the central bank now projects a 0.6% expansion for the fiscal year that began in April, up from an earlier 0.5% estimate. It also trimmed the forecast for core consumer-price inflation in fiscal 2026 to 2.5%, down from 2.8%.
Why it matters
Japan's central bank policy influences global markets and domestic economic conditions.
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interest ratebenchmark rateeconomic outlookfiscal 2026core consumer pricesinflation forecastgrowth projectionpolicy meeting