BoJ in no hurry to raise rates given downside risks to economy and prices
Key points
- Policy Board decides unanimously to leave policy rate on hold amid poor visibility for economy and prices caused by tariff shock
- Bank assumes cautious stance on balance of risks to economy and prices, saying risks are "skewed to the downside" in both FY25 and FY26
- Although BoJ reiterated its intention to continue raising rates if economic activity and prices remained "on track," it left the impression that it would give priority to unfolding developments and was in no hurry to hike
