Bank of Japan Keeps Policy Rate Unchanged at 0.75%

The Bank of Japan (BOJ) kept its key short-term policy interest rate unchanged at 0.75% on January 23.

The BOJ made this decision during its monetary policy meeting, which was held over two days until this date.

Bank of Japan. Reuters Yonhap News

Last month, the Bank of Japan raised its benchmark rate from "around 0.5%" to "around 0.75%." As a result, market expectations were that the central bank would keep the rate steady this month and monitor economic trends.

The BOJ ended its negative interest rate policy in March 2024 for the first time in 17 years, and subsequently raised the benchmark rate to around 0.25% in July of the same year from the previous 0~0.1%. In January of last year, the rate was increased to around 0.5%, continuing a gradual tightening trend. The current policy rate is now at its highest level in 30 years since 1995.

Experts believe there is a high possibility that the BOJ will further raise its policy rate after June. Some even suggest that a rate hike could come as early as April.