Archive · 19 Sep 2025
Japan's Central Bank Holds Rates, but Shifts Policy
The Bank of Japan, which controls the money in Japan, decided to keep interest rates the same.
This means the cost of borrowing money won't change for now.
Even though inflation is slowing down, it's still higher than the bank's target.
They are also starting to sell off some of the investments they bought earlier to help the economy.
Some people think the bank might raise rates later this year, while others think it will not change the big picture.
The decision was made as the country is seeing a new leader.
BoJ kept interest rates at 0.5% on Friday.
The bank will begin reducing its holdings.
August inflation slowed to 2.7% from July's 3.1%.
The BoJ's target inflation is 2%.
Leadership changes are expected in the ruling party.
- Who
- Bank of Japan (BoJ)
- What
- Maintained interest rates and adjusted monetary policy.
- When
- Friday, August
- Where
- Japan
- Why
- Amid economic concerns and to start reducing funds.
- Interest Rate
- 0.5%
- August Inflation
- 2.7%
- July Inflation
- 3.1%
- BoJ Action
- Reducing holdings
- BoJ Target Inflation
- 2%