Particle.news
Download on the App Store
9 ARTICLES
·
16m ago

Bank of Japan Keeps Rate at 0.5% Following Fed Rate Cut

Persistent inflation keeps the bank cautious on further tightening.

Image
Image
Bank of Japan Governor Kazuo Ueda attends a press conference after its policy meeting in Tokyo, Japan July 31, 2025. REUTERS/Issei Kato/File Photo

Overview

  • The Bank of Japan left its overnight call rate unchanged at 0.5% after a two-day policy meeting.
  • Consumer prices remain above the 2% target at roughly 2.5% to 3%, supporting a data-dependent pause.
  • The bank warned that higher U.S. tariffs tied to President Donald Trump’s policies threaten Japan’s exports as earlier front-loaded shipments fade.
  • Domestic political risk was noted, with Prime Minister Shigeru Ishiba stepping down and the ruling party preparing a leadership vote early next month.
  • The Federal Reserve cut its policy rate by 0.25 percentage points to about 4.1% this week, and the Nikkei 225 set a new record Thursday before edging lower on Friday.