Bank of Japan Holds Rate at 0.75% Amid Inflation Concerns

AI Summary

The Bank of Japan (BOJ) maintained its policy rate at 0.75% on Tuesday, with a split 6-3 vote. It raised its core inflation forecast to 2.8% from 1.9%, citing increased supply-side risks due to the Iran war. The BOJ also adjusted its growth forecast for FY 2026, lowering it to 0.5% from 1%. Japan's inflation rose to 1.8% in March, with the Nikkei 225 index down 0.5%, while the 10-year Japanese government bond yield reached 2.496%, the highest since 1997. These changes point to ongoing economic challenges in Japan amid rising energy prices.