BOJ keeps interest rates unchanged

The Bank of Japan (BOJ) has decided to keep its benchmark interest rate unchanged. The central bank wrapped up its two-day policy meeting on Wednesday. The BOJ says it will continue to target a short-term rate of around half a percent.

Policymakers apparently believe more time is needed to gauge the effects of their January rate hike, the first since July 2024. Current price trends in Japan are another factor in rate-hike discussions. This was mainly due to a rise in rice prices. 

BOJ Governor Ueda Kazuo held a news conference later on Wednesday to explain the decision.