The Bank of Japan left its interest rate unchanged, as widely expected, on Thursday and lowered its growth projections citing trade tariff threats.
The policy board decided, by a unanimous vote, to hold the uncollateralized overnight call rate to remain at around 0.50 percent.
In its quarterly report, the central bank downgraded its fiscal 2025 growth outlook to 0.5 percent from 1.1 percent and the projection for the fiscal 2026 to 0.7 percent from 1.0 percent.
The economy is forecast to expand 1.0 percent in the fiscal 2027.
Inflation outlook for fiscal 2025 and 2026 were also lowered mainly due to the fall in crude oil prices and the downward revision of the GDP growth rates.
Inflation was projected to ease to 2.2 percent in the fiscal 2025 compared to the previous forecast of 2.4 percent. The estimate for the fiscal 2026 was trimmed to 1.7 percent from 2.0 percent. For the fiscal 2027, inflation was seen at 1.9 percent.
The bank said risks to economic activity and prices are skewed to the downside for fiscal 2025 and 2026.
For comments and feedback contact: editorial@rttnews.com
What parts of the world are seeing the best (and worst) economic performances lately? Click here to check out our Econ Scorecard and find out! See up-to-the-moment rankings for the best and worst performers in GDP, unemployment rate, inflation and much more.
