BOJ Keeps Policy Rate at About 0.5%
The Policy Board decided unanimously to encourage the uncollateralized overnight call rate to remain at around 0.5%. 12
The Bank judged that Japan's economy is recovering moderately, despite some weak movements. Year-on-year CPI excluding fresh food is currently in the low 3% range. 12
Uncertainty over Japan's economy and prices remains high, owing to trade policies of various countries, overseas developments, resource prices, and corporate wage- and price-setting behavior. The Bank said exchange-rate fluctuations have become more likely to affect prices than in the past. 12
Governor Ueda said the Bank will continue to raise the policy rate and adjust the degree of monetary easing if the outlook materializes, given that real interest rates are extremely low. 1
Governor Ueda cited Rengo's first tally of a 5.46% spring wage increase, saying it was broadly in line with the outlook at the January meeting. 1
The minutes of the March 18–19 meeting were published on May 8, 2025, after approval at the April 30 and May 1 meeting. 1