TOKYO, Sep 19 (News On Japan) - The Bank of Japan decided on September 19th to maintain its policy interest rate at 0.5 percent, marking the fifth consecutive meeting without a rate change. The decision, backed by a majority of the Policy Board, comes as the central bank monitors the impact of U.S. tariffs known as the “Trump tariffs.”
Two board members had proposed raising the rate to 0.75 percent, arguing that the target for price stability had largely been met and that inflation risks were growing. However, the proposal was rejected.
The BOJ also decided to begin selling exchange-traded funds (ETFs) and other assets it holds, which are valued at about 70 trillion yen. The plan calls for annual sales of roughly 620 billion yen into the market.
Following the announcement, Japanese equities, which had been trading at record highs, experienced a sharp downturn. The Nikkei index temporarily dropped more than 800 yen, reflecting investor concern over the policy shift.
Source: TBS
