Tokyo - (Saba):
The Bank of Japan kept its interest rate unchanged but lowered its growth forecast amid growing concerns about the impact of US tariffs on the economy.
In a statement on Thursday, the bank projected the Japanese economy to grow by 0.5 percent in the current fiscal year that began in April, compared to its previous forecast of 1.1 percent growth. It also warned of a decline in domestic corporate profits.
The statement added that after keeping the short-term interest rate unchanged at around 0.5 percent for the second consecutive meeting, it remains highly uncertain how trade policies will evolve and how economic activity and prices abroad will react.
The bank, which has long targeted a sustainable 2 percent inflation rate, indicated that it expects the rate to range between 1.5 and 2.5 percent between fiscal 2025 and 2027.
Core consumer prices, excluding volatile fresh food, are expected to rise 2.2 percent in fiscal year 2025, compared to the 2.4 percent forecast in January.
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