PANews reported on May 1 that the Bank of Japan kept its target interest rate unchanged at 0.50% for the second consecutive meeting, in line with market expectations.

The Bank of Japan lowered its core CPI forecast for fiscal 2025-2026 to 2.2% and 1.7%, respectively, from 2.4% and 2.0% previously. At the same time, the core-core CPI forecast was adjusted to 2.3% and 1.8%, from 2.1% and 2.1% previously. The Bank of Japan said it would continue to raise interest rates if economic and price trends meet expectations.