Bank of Japan Holds Steady on Interest Rates Amid Inflation Forecast

The Bank of Japan has decided to keep interest rates steady, maintaining their forecast of near 2% inflation. This move suggests a continued rollback of the massive monetary stimulus. With a cautious eye on international economic trends, especially from the U.S., the BOJ remains cautious.

The Bank of Japan (BOJ) kept its interest rates stable on Thursday, aligning with predictions of sustained inflation close to the 2% target in the upcoming years. The decision indicates the BOJ's ongoing strategy to gradually reduce its substantial monetary stimulus efforts.

In a unanimous vote, the nine-member board opted to keep the short-term policy rate fixed at 0.25%. The decision comes as the BOJ emphasized the importance of monitoring external economic conditions, particularly in the United States, alongside developments in financial markets.

BOJ Governor Kazuo Ueda is slated for a 3:30 p.m. (0630 GMT) press conference to further elaborate on the decision, presenting a more comprehensive analysis in a quarterly outlook report.

(With inputs from agencies.)