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Economic Buzz: Bank of Japan holds rates at 0.75% amid inflation and energy risks
26-May-2026 10:45
The Bank of Japan left its benchmark interest rate unchanged at 0.75%, maintaining borrowing costs at their highest level since 1995 as policymakers assessed the economic impact of rising energy prices and geopolitical uncertainty. While the central bank upgraded its FY2026 inflation forecast to 2.8% on expectations of higher fuel and goods costs, it simultaneously lowered its growth outlook to 0.5% amid softer domestic momentum. Despite concerns over slowing growth, the BoJ signaled confidence that supportive financial conditions and resilient corporate earnings would help sustain a moderate economic recovery.

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