PANews reported on January 23 that the Bank of Japan (BOJ) kept its benchmark interest rate unchanged at 0.75%, in line with market expectations. The decision was approved by an 8-1 vote. BOJ policy board member Hajime Takada dissented. Takada argued that the price stability objective had been largely achieved, and given the ongoing recovery of overseas economies, the risks to Japanese prices were skewed to the upside. He proposed raising the short-term interest rate target from 0.75% to 1.0%.

The Bank of Japan stated that its median core CPI forecasts for fiscal years 2025-2027 are 2.7%, 1.9%, and 2.0%, respectively (up from 2.7%, 1.8%, and 2.0% in October last year). The median real GDP growth forecasts for fiscal years 2025-2027 are 0.9%, 1.0%, and 0.8%, respectively (up from 0.7%, 0.7%, and 1.0% in October last year). If economic and price trends align with its forecasts, and as the economy and prices improve, the Bank of Japan will continue to raise policy interest rates.