The Bank of Japan held interest rates on Thursday as doubts remained over growth prospects for the global economy and the sustainability of Japan’s wage-driven inflation.
The decision following the BoJ’s final monetary policy meeting of 2024 left its short-term policy rate at 0.25 per cent. In a statement, the central bank warned of “high uncertainties surrounding Japan’s economic activity and prices”.
The BoJ’s decision was further complicated by the US Federal Reserve’s move on Wednesday to cut rates by a quarter of a percentage point, while simultaneously signalling a slower pace of rate cuts next year.
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