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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] TOKYO – The Bank of Japan (BOJ) has kept its benchmark interest rate unchanged at 0.5%, marking the fourth consecutive hold, as policymakers monitor global trade uncertainty stemming from U.S. tariff policies.
The decision came after the BOJ’s two-day Monetary Policy Meeting concluded on July 31. The central bank cited the need for “careful assessment of the uncertainties surrounding the impact of U.S. tariff policies on the global economy.”
The BOJ noted:
“Uncertainty remains high regarding the global economic effects of U.S. trade policy, and we will continue to watch developments closely.”
This hold follows a historic shift in March 2023, when the BOJ ended its negative interest rate policy for the first time in 17 years. Since then, the policy rate was raised to 0.25% in July 2023 and 0.5% in January 2024, where it has remained steady for six months.
Analysts say the BOJ is likely to keep its stance cautious as long as external risks — including U.S. tariffs and global economic volatility — remain in focus.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
