MNI BRIEF: BOJ Keeps Rate At 0.50%; Sticks To Gradual Hike

The Bank of Japan, as widely expected, left its policy interest rate unchanged at 0.50% on Thursday, citing continued high uncertainty surrounding the economic and inflation outlook.

“Given that real interest rates are at significant low levels, if the outlook for economic activity and prices will be realized, the bank, in accordance with improvement in economic activity and prices, will continue to raise the policy interest rates and adjust the degree of monetary accommodation,” the BOJ said.

However, the central bank offered no guidance on the timing or pace of future hikes, stressing that any moves would depend on how economic, financial and price conditions evolve.

Policymakers said they will monitor the effects of U.S. trade policy and market volatility on Japan’s economy and inflation to assess potential downside risks.

The BOJ’s next policy meeting is scheduled for Sept 18-19.