Bank of Japan holds rates steady at 0.

Bank of Japan holds rates steady at 0.75%. The BoJ maintained its short-term interest rate at 0.75% during its April 2026 meeting, keeping borrowing costs at their highest level in three decades. The decision came via a split 6-3 vote, signaling some internal debate among policymakers despite the expected outcome. More significantly, officials nearly doubled their inflation forecast for 2026, suggesting persistent price pressures in Japan's economy. This hawkish adjustment to inflation expectations indicates the central bank sees sustained inflationary momentum, which could influence future monetary policy decisions. Market participants are closely watching whether the BoJ will signal additional rate increases in coming months as inflation remains elevated compared to historical norms.