Japan's central bank keeps interest rate unchanged at 0.75 pct

TOKYO, March 19 (Xinhua) -- The Bank of Japan (BOJ) decided to leave its benchmark interest rate unchanged at around 0.75 percent after concluding its two-day monetary policy meeting on Thursday.

The central bank maintained the key rate steady for the second consecutive meeting, as widely expected, after raising it to the highest level in 30 years in December 2025.

The decision came amid uncertainty over the effects of the Middle East crisis on inflation and Japan's broader economy, which relies heavily on fuel imports.

In a statement released after the meeting, the BOJ emphasized the need to monitor developments and assess their impact.

"In the wake of increased tension over the situation in the Middle East, global financial and capital markets have been volatile and crude oil prices have risen significantly; future developments warrant attention," the statement said.

Tensions in the Middle East have rattled financial markets. The Japanese yen has weakened as buying of the U.S. dollar in times of crisis has been spurred. Tokyo shares have also tumbled.

Surging crude oil prices following the closure of the Strait of Hormuz have pushed Japan's average retail gasoline price to a record high, while driving up the cost of a wide range of other goods.

The BOJ, however, did not close the door to further interest rate hikes.

The statement said that if economic activity and prices move in line with the bank's outlook, it will continue to raise the policy interest rate and adjust the degree of monetary accommodation to achieve its 2 percent inflation target in a stable manner.■