TOKYO, Jan 23 (KUNA) -- Japan's central bank decided Friday to leave its short-term policy rate unchanged at around 0.75 percent, while upgrading its economic outlook for fiscal 2026.
At the end of its two-day policy meeting, Bank of Japan's (BOJ) Governor Kazuo Ueda and his eight board colleagues voted 8-1 to maintain the benchmark rate, holding the policy the BOJ made in December, according to a statement released by the central bank.
Last month, the BOJ raised the rate to around 0.75 percent from 0.5 percent, the highest level in about 30 years.
Meanwhile, in its quarterly outlook report issued after the gathering, the BOJ upgraded its growth projection of the world's third-largest economy for fiscal 2025 through March, saying gross domestic product (GDP) will grow at a 0.9 percent annual pace, up from an earlier estimate of 0.7 percent it released in October.
The central bank also revised upward its forecasts for fiscal 2026 to 1.0 percent expansion, compared with the previous 0.7 percent estimate.
"Japan's economy is likely to continue growing moderately, with overseas economies returning to a growth path, and as a virtuous cycle from income to spending gradually intensifies, supported by factors such as the government's economic measures and accommodative financial conditions," the BOJ said in the report.
The central bank also cautioned against uncertainties, saying, "Risks to the outlook include developments in overseas economic activity and prices under the impact of trade and other policies in each jurisdiction, wage- and price-setting behavior of firms, and developments in financial and foreign exchange markets." It is necessary to pay due attention to the impact of these risks on Japan's economic activity and prices, the bank noted. (end) mk.aai