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News in English (USA) / 20.09.2024 / 08:00

Bank of Japan Holds Interest Rates Steady Amid Rising Inflation and Market Rally

The Bank of Japan (BOJ) has decided to keep its key interest rate unchanged at 0.25%, as widely expected by market analysts. This decision comes as Japan's core inflation accelerates to 2.8% for the fourth consecutive month, creating speculation about potential future rate hikes. Asian markets have reacted positively, extending a stock rally that was originally sparked by Wall Street's recent gains. Investors are now focusing on whether the BOJ will signal any hints for an upcoming rate adjustment, with December being suggested as a possible timeframe for the next hike. The Japanese yen has seen slight fluctuations, gaining ground after the BOJ's announcement, while the overall economic outlook remains upbeat. As the BOJ treads cautiously through normalization, all eyes remain on inflation trends and their impact on monetary policy.