URGENT: BOJ maintains ultralow rates, expects 1.6% inflation in FY 2025

The Bank of Japan decided Friday to maintain interest rates at an ultralow level, in a widely expected outcome of the first policy meeting under new Governor Kazuo Ueda, judging that more time is needed to achieve its 2 percent inflation target stably.

In an economic and price outlook report released after the two-day meeting, the central bank forecast that core consumer prices, excluding volatile fresh food items, will rise 1.6 percent in fiscal 2025.

With the latest decision, the BOJ will continue to set short-term interest rates at minus 0.1 percent while guiding 10-year Japanese government bond yields to around zero percent.

© Kyodo News