On April 26, the Bank of Japan decided to keep interest rates at zero and expressed confidence that inflation would reach 2% in the coming years. This suggests a potential increase in borrowing costs later in the year.
The central bank also reaffirmed its commitment to continue purchasing government bonds at the current pace, dismissing speculations that it might reduce purchases to curb the yen’s depreciation.
BOJ Governor Kazuo Ueda stated in a post-meeting news conference that future monetary policy decisions would be based on economic and price developments. Adjustments to monetary easing could be made if inflation aligns with forecasts or if there are significant deviations in the economy and prices.
Overall, the Bank of Japan remains vigilant in monitoring economic indicators and risks to make informed decisions on monetary policy.