The Bank of Japan opted to maintain its key interest rates on Thursday, citing concerns regarding potential risks to economic activity and pricing dynamics.
During the policy board meeting, the decision was made by a vote of 8-1 to keep the uncollateralized overnight call rate steady at approximately 0.25 percent, marking the highest level since the end of 2008.
Earlier this year, the BoJ concluded its negative interest rate policy in March and subsequently increased the interest rate to 0.25 percent in July. This marks the second instance of policy tightening by the BoJ within the year.
The board emphasized the importance of closely monitoring developments in financial and foreign exchange markets and assessing their consequential effects on Japan’s economic activity and pricing structure.
The bank noted, "With firms increasingly inclined to raise wages and prices, shifts in exchange rate developments have a more pronounced impact on prices than in the past."
The material has been provided by InstaForex Company -
www.instaforex.com
