BOJ Keeps Rates Steady as Ishiba’s Departure Adds to Uncertainty
The Bank of Japan left its benchmark interest rate unchanged as it sought more clarity over lingering economic and political uncertainty, following Prime Minister Shigeru Ishiba’s resignation announcement earlier this month.
The BOJ stuck with its policy rate of 0.5% at the end of a two-day gathering in Tokyo Friday, according to its statement. The outcome was expected by all 50 economists surveyed by Bloomberg.
The lack of action on Friday was widely expected after Ishiba’s declaration kicked off a race for his successor, roughly a year after the last leadership election. From an economic perspective, BOJ officials are still assessing the impact of US tariffs both at home and abroad even after Japan managed to solidify its US trade deal, people familiar with the matter told Bloomberg earlier.
The yen extended gains against the dollar slightly, to trade at 147.48.
Source: Bloomberg.com
