The Bank of Japan maintains interest rates unchanged and lowers CPI expectations

The Bank of Japan maintained its target interest rate at 0.50% for the second consecutive meeting, in line with market expectations. The Bank of Japan has lowered the median core CPI expectations for the 2025-2026 fiscal year to 2.2% and 1.7%, respectively, compared to the previous expectations of 2.4% and 2.0%. Meanwhile, the median expected core CPI has been adjusted to 2.3% and 1.8%, compared to the previous expectations of 2.1% and 2.1%. The Bank of Japan has stated that if the economic and price trends meet expectations, it will continue to raise interest rates.