Economic Buzz: BOJ holds rates at 0.75% as inflation outlook surges

The Bank of Japan kept its benchmark rate steady at 0.75% in April 2026, marking its highest level since 1995. While the decision was widely expected, a split 6?3 vote revealed growing pressure for tighter policy. The central bank sharply raised its inflation forecast to 2.8%, driven by rising energy costs, even as it cut growth expectations to 0.5%. Despite softer momentum, Japan?s economy is projected to expand steadily, supported by government measures and resilient corporate earnings.

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