The Bank of Japan has chosen to keep its benchmark interest rate steady at approximately 0.25%. This decision comes amidst increasing uncertainties regarding the economic outlook and government stability following the ruling coalition's disappointing electoral performance, which was the worst since 2009.
Governor Kazuo Ueda and the board members expressed concerns about the potential impact of political instability on economic conditions, leading the central bank to maintain its current monetary policy stance. This decision reflects a cautious approach as the BOJ navigates a complex landscape of economic challenges and political dynamics.
The central bank's decision aligns with the expectations of all but one of the 53 economists surveyed by Bloomberg.