TOKYO - The Bank of Japan decided to leave interest rates unchanged, opting against an additional rate hike for now, after its monetary policy meeting concluded earlier with a majority vote to maintain the policy rate at 0.75%, marking the third consecutive meeting at which rates were left unchanged.
At the same time, the number of board members opposing the decision to hold rates steady and instead calling for a hike rose to three. One member noted that while uncertainty surrounding the situation in the Middle East remains, upside risks to prices are high.
In its quarterly Outlook Report, which presents projections for the economy and prices, the BOJ said higher crude oil prices are expected to push up inflation, particularly through energy costs. It raised its forecast for consumer price growth for the current fiscal year by 0.9 percentage point from the previous estimate to 2.8%.
The increase in members advocating higher rates, together with the upgraded inflation outlook, reinforced market expectations that the BOJ is leaning toward future tightening. In foreign exchange markets, the yen strengthened on the news.
Source: TBS
