Bank of Japan meeting —

At its 19 March 2025 meeting, the Bank of Japan held its policy rate at 0.25%.

Decision

hold — 0.25% to 0.25%

Key passages

The Bank will encourage the uncollateralized overnight call rate to remain at around 0.5 percent.

Rate unchanged as widely expected; unanimous vote signals no urgency to move.

Underlying CPI inflation is expected to increase gradually, since it is projected that, with a growing sense of labor shortage, the output gap will improve and medium- to long-term inflation expectations will rise with a virtuous cycle between wages and prices continuing to intensify.

BOJ sees wage-price dynamics strengthening, reinforcing the case for eventual normalization.

Meeting documents

Background reading

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