Tokyo: The Bank of Japan kept its interest rate unchanged but lowered its growth forecast amid growing concerns about the impact of US tariffs on the economy.
According to Qatar News Agency, in a statement issued on Thursday, the bank projected Japan’s economy would grow by 0.5 percent in the current fiscal year, which began in April, down from its previous forecast of 1.1 percent. It also warned of declining profits among domestic companies.
After leaving the short-term interest rate unchanged at around 0.5 percent for the second consecutive meeting, it remains highly uncertain how trade policies will develop and how economic activity and prices abroad will respond, the statement added.
The bank, which has long targeted a sustainable inflation rate of 2 percent, said it expects inflation to range between 1.5 percent and 2.5 percent between fiscal years 2025 and 2027.