The Bank of Japan has decided to stand pat this time, and will keep raising interest rates as economic activity and prices improve as scheduled

BlockBeats News, March 19th. The Bank of Japan's monetary policy meeting statement showed that the committee voted 8-1 to keep the interest rate at 0.75%. While certain sectors of the Japanese economy have shown weakness, overall it is in a moderate recovery. Exports and industrial production are generally stable. Corporate profits remain high overall, despite the downward pressure on the manufacturing sector from tariffs.

Inflation expectations have moderately risen. With overseas economies returning to growth trajectories and supported by government economic measures and a loose financial environment, a benign cycle of income and spending is gradually strengthening, allowing the Japanese economy to continue its moderate growth.

However, against the backdrop of increased tension in the Middle East, global financial and capital markets are experiencing heightened volatility, significant increases in oil prices, warranting close attention to future developments. As the economy continues to improve, the sense of labor shortage is expected to worsen, leading to an increase in medium- to long-term inflation expectations. Given that real interest rates are significantly low, if the economic activity and price outlook presented in the January outlook report materialize, the Bank will continue to raise the policy rate as economic activity and prices improve. (Forex Live)