BOJ Holds Policy Rate at 0.75% for Third Straight Meeting

The Bank of Japan left its benchmark interest rate unchanged at about 0.75% on April 28.

Kyodo News and Nikkei reported that the BOJ decided at its monetary policy meeting, which began a day earlier, to keep its short-term policy rate at about 0.75%.

The central bank raised the short-term policy rate to about 0.75% from about 0.5% at its December meeting last year.

It has now held rates steady for three consecutive meetings, in January, March and April 28, highlighting its cautious stance.

The latest decision was seen as reflecting the BOJ's judgment that it cannot yet accurately assess the impact of heightened tensions in the Middle East and high oil prices on Japan's economy and inflation.

The BOJ also raised its forecast for this year's consumer inflation, excluding fresh food, to 2.8% from the 1.9% year-on-year increase projected in January.

Oh Se-sung, Hankyung.com reporter sesung@hankyung.com