The decision is in line with analysts' expectations. The Japanese currency, the yen, fell against the dollar in connection with the interest rate decision being communicated.
"There are several types of risks to take into account going forward. The extreme uncertainty regarding trade is of special importance", writes the Bank of Japan in a statement.
The central bank is also scaling down expectations for growth in 2025 to 0.5 percent, a clear decrease compared to the prognosis in January of 1.1 percent.
The Bank of Japan raised the interest rate last in January and the current level is the highest since 2008.
