Japan Zinssatz

The Bank of Japan (BoJ) kept its key short-term interest rate at 0.5% for the second straight month in May, maintaining the highest level since 2008 and aligning with market estimates. The unanimous decision came amid rising concerns that U.S. President Trump's tariff measures could dampen both U.S. and global economic growth. Tokyo is currently negotiating a trade deal with Washington, which may influence future policy moves. The board signaled that it would raise rates if economic and price forecasts materialize. In its quarterly outlook, the BoJ lowered its FY 2025 GDP growth forecast to 0.5% from 1.0% projected in January, citing trade risks and policy uncertainty. The 2026 growth outlook was also reduced to 0.7% from 1.0%. The BoJ also trimmed its core inflation forecast for FY 2025 to 2.2% from 2.7% and expects it to ease further to 1.7% in FY 2026 before ticking up to 1.9% in FY 2027. Meanwhile, headline inflation is projected to hover around 2% through the FY ending March 2028.