Japan leaves the interest rate unchanged

Japan's central bank has decided to leave the interest rate unchanged at 0.5 percent.

» Published: March 19 2025

Japan leaves the interest rate unchanged
Photo: Eugene Hoshiko/AP/TT

The bank is simultaneously signaling concern over the potential effects due to the tensions in world trade, which makes the future even more difficult to predict.

The decision to leave the interest rate unchanged was in line with market expectations.

The Bank of Japan last raised the interest rate in January and the current level is the highest since 2008. As inflation appears to be in line with the bank's forecasts, many analysts expect the next increase to be delayed until June or July, writes Bloomberg.

While central banks elsewhere have raised their interest rates at a relatively rapid pace in recent years, Japan's central bank has stood out by long sticking to negative interest rates in order to get inflation and growth going. It was abandoned last March.

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By TTTranslated and adapted by Sweden Herald
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