Bank Of Japan Holds Policy Rate As Expected

(RTTNews) - The Bank of Japan maintained its interest rate on Thursday, citing risks to the inflation outlook due to the ongoing conflict in the Middle East.

The policy board, headed by Ueda Kazuo, decided by 8-1 majority vote, to hold the interest rate at around 0.75 percent.

The bank expects inflation to temporarily decelerate to a level below 2 percent, with the waning of the effects of the rise in food prices, partly due to the effects of government measures to address rising prices.

However, inflation is then expected to come under upward pressure, affected by the recent rise in crude oil prices, the board said.

If the outlook for economic activity and prices develop as estimated in the January Outlook Report, the Bank will continue to raise the policy interest rate and adjust the degree of monetary accommodation, the bank said.