Following its third rate increase in January, the Bank of Japan held its key short-term interest rate steady at around 0.5% during its March meeting, as anticipated. The policymakers emphasized its focus on assessing the effects of rising global economic risks,

The BOJ highlighted conflicting economic forces at play. While rising rice prices were expected to push inflation higher, uncertainty surrounding global trade policies clouded Japan’s economic outlook

Governor Kazuo Ueda said rising food costs and stronger-than-expected wage growth could push up underlying inflation, highlighting the Bank of Japan’s attention to mounting domestic price pressures