TOKYO (Jan 23): The Bank of Japan (BOJ) kept interest rates steady on Friday and raised its economic and inflation forecasts, signalling its confidence a moderate recovery would justify raising still-low borrowing costs further. The central bank also maintained its pledge to keep raising rates if economic and price developments move in line with its projections. The BOJ has been tapering bond buying since 2024 under a pre-set, moderate pace. Ueda has repeatedly said while bond yields should be set by markets, the BOJ will step in if they make "exceptional, unusual moves". The BOJ changed direction in 2024, raising its policy rate several times and tapering bond purchases on the view Japan was on the cusp of durably achieving the bank's 2% inflation target.

Source: The Edge Markets January 23, 2026 03:27 UTC