Bank of Japan Stands Pat But Raises Price Forecasts
Wall Street JournalThursday, July 31, 2025 at 3:54:00 AM
The Bank of Japan decided to keep interest rates unchanged at 0.5%, maintaining its cautious approach despite slightly raising its inflation forecasts. This marks another hold since January’s small rate hike, signaling policymakers aren’t rushing to tighten further—even as prices creep up.
Editor’s Note: Japan’s economy is stuck in a tricky spot: inflation is lingering, but not enough to push the central bank into aggressive action. For consumers and businesses, it means borrowing costs stay low for now, but the tweaked forecasts hint at growing pressure—so don’t expect rates to stay this low forever. Globally, it’s another sign that major economies are moving at different speeds, with Japan still trailing the Fed and ECB in hiking rates.
— Curated via WP Now’s
