BOJ Keeps Policy Rate at 0.5% Unanimously
At the July 30–31 meeting, the Bank of Japan decided unanimously to guide the uncollateralized overnight call rate to remain at around 0.5%. 12
The Outlook Report judges that Japan's economy is recovering moderately, with some weak signs. Growth is expected to slow under the influence of trade policies and then rise again as overseas economies return to a moderate growth path. 12
Core CPI (excluding fresh food) is projected at the upper 2% range in fiscal 2025, the upper 1% range in fiscal 2026 and around 2% in fiscal 2027. 12
Compared with the previous outlook, the growth forecast is broadly unchanged. The fiscal 2025 price forecast was revised up mainly because of higher food prices, while the fiscal 2026 and 2027 forecasts are broadly unchanged. 12
Risks to the economic outlook for fiscal 2025 and 2026 are skewed to the downside, while price risks are broadly balanced. Uncertainty over trade policies remains high. 12
The Governor said that, if the outlook is realized, the Bank will continue raising the policy rate in line with improvements in economic activity and prices. 1