The Bank of Japan kept interest rates unchanged on Thursday, but reiterated its pledge to continue raising borrowing costs if the economy moves in line with its expectations.
The bank kept short-term interest rates at 0.5 percent, as expected.
In its quarterly outlook report issued today, the Central Bank Board slightly revised its economic growth forecast for the current fiscal year ending in March 2026, and raised its inflation forecast for fiscal year 2026.
The Bank of Japan also said it expects inflation to reach 2 percent in the latter half of the year, and maintained its view that risks to inflation expectations are “roughly balanced.”
