BOJ keeps rates unchanged, adjusts GDP growth, as tariff threat brings Apac currency turbulence

The Bank of Japan BOJ has decided to leave its policy interest rate, or the uncollateralised overnight call rate, unchanged at around 0.5%, pausing its rate hike journey since its latest adjustment in January, from 0.25% to 0.5%.

The decision was mainly driven by economic uncertainty from trade tensions, continued inflation and a recent surge in the yen.

The outlook report from the BOJ, published on May 1, cited moderate economic growth both domestically and internationally as a baseline scenario.

Japan’s 2025 GDP gross domestic product growth forecast was also adjusted downward to 0.5%, from 1.1% growth projected in January, “due...