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2025-09-19 11:58:14
[The Bank of Japan remains on hold as political uncertainty exacerbates policy dilemmas] After Japanese Prime Minister Shigeru Ishiba announced his resignation, the Bank of Japan maintained its benchmark interest rate unchanged in the face of ongoing economic and political uncertainties in an effort to obtain clearer policy guidance. According to a statement from the Bank of Japan, decision-makers maintained the policy interest rate unchanged at 0.5% at the two-day Tokyo policy meeting that ended on Friday. This result was in line with the expectations of all 50 economists surveyed by the institution. After Shigeru Ishiba announced the launch of the competition for his successor (about a year after the last leadership election), the central bank's decision to remain on hold was widely expected by the market. People familiar with the matter previously said that even though Japan has consolidated its trade agreement with the United States, central bank officials are still assessing the impact of U.S. tariff policies on the domestic and foreign economies. The yen slightly extended its gains against the U.S. dollar and is now trading at 147.58 yen to the dollar.
