FX.co ★ Bank Of Japan Keeps Rate Unchanged As Expected

The Bank of Japan (BoJ) kept its benchmark rate steady on Friday, a move anticipated by many analysts. The Policy Board unanimously decided to retain the uncollateralized overnight call rate at approximately 0.25 percent.

In March, the BoJ concluded its negative interest rate policy.

According to the BoJ’s statement, while the economy has shown moderate recovery, certain areas still exhibit some levels of weakness.

Marcel Thieliant, an economist at Capital Economics, predicts that the BoJ will increase its policy rate by another quarter point at its October meeting.

This week, the US Federal Reserve unexpectedly reduced its benchmark rate by half a percentage point, marking the first rate cut in over four years. Additionally, on Thursday, the Bank of England held its bank rate steady at 5.00 percent following a quarter-point reduction in August.