Bank of Japan Keeps Interest Rate Unchanged at 0.5%

In a unanimous decision on Wednesday, the Bank of Japan (BoJ) decided to maintain its benchmark interest rate at 0.5%. This decision comes at a time when global markets are facing uncertainties due to the protectionist trade policies of United States President Donald Trump.

Economic Outlook and Risks

The BoJ stated, "Japan's economy has recovered moderately, although some weakness has been seen in part. Overseas economies have grown moderately on the whole." However, the central bank also highlighted the high uncertainties surrounding Japan's economic activity and prices, particularly regarding the evolving situation of trade and other policies.

Recent Rate Hike

It is noteworthy that the BoJ had increased the rate by 25 basis points from 0.25% to 0.5% in January, marking the highest level in 17 years.