On April 26, the Bank of Japan decided to keep interest rates at around zero. The bank expressed confidence that inflation was on track to reach 2% in the coming years and hinted at a possible increase in borrowing costs later in the year.
Additionally, the Bank of Japan reiterated its commitment to continue buying government bonds at the current pace, despite some expectations that it might reduce purchases to prevent the yen from depreciating.
BOJ Governor Kazuo Ueda stated during a post-meeting news conference that future monetary policy decisions would be based on economic and price developments. The bank will closely monitor the economy, prices, and associated risks, adjusting short-term rates accordingly.
Ueda mentioned that if inflation aligns with forecasts, the bank may adjust its monetary easing measures. Alternatively, if the economy and prices exceed expectations, this could also prompt a change in policy.
Overall, the Bank of Japan’s decision reflects its cautious approach to monetary policy, closely monitoring economic indicators and remaining prepared to make adjustments as needed.