Bank of Japan Keeps Key Interest Rate Unchanged; Growth Forecast Halved This Year
Korea Economic Daily
Summary
- The Bank of Japan announced on the 1st that it has kept the key interest rate unchanged at 0.5% annually.
- It was reported that Japan's economic growth forecast for this year has been revised down from 1.1% to 0.5%.
- It is interpreted that U.S. tariff policies have influenced this decision, and the Japanese government is negotiating tariffs with the United States.
Key Interest Rate at 0.5% Annually
Growth Forecast 1.1→0.5%
The Bank of Japan kept its key interest rate unchanged at 0.5% on the 1st. The economic growth forecast for this year has been revised down from 1.1% to 0.5%. This is attributed to the impact of U.S. tariff policies.
The real Gross Domestic Product (GDP) growth rate has fallen below 1% three times in five years up to 2023: in 2023 (0.7%), 2020 (-3.9%), and 2019 (-0.8%).
The Japanese government is negotiating tariffs with the United States. Ryosei Akazawa, Minister for Economic Revitalization, is scheduled to hold a second round of talks with the U.S. side on the 1st (local time).
Tokyo Correspondent: Kim Il-kyu
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
