The headquarters of the Bank of Japan (BOJ) behind the cherry blossoms in Tokyo on March 20, 2023.
Kazuhiro Noji | AFP | Getty Images
The Bank of Japan on Thursday kept its benchmark interest rate steady at 0.25%.
The decision comes a day after the US Federal Reserve cut interest rates by 25 basis points, bringing the federal funds rate to 4.25% – 4.5%.
the yen It fell by 0.16% against the dollar after the interest rate decision, to trade at 155.06.
The Bank of Japan said in its statement that the suspension decision was a split decision of 8-1, with board member Naoki Tamura calling for a 25 basis point hike.
The Bank of Japan's decision was consistent with a CNBC poll, which showed that 13 out of 24 economists expect the Bank of Japan to keep its key interest rate unchanged in December before raising interest rates at the next meeting in January.
The survey was conducted Dec. 9-13, before the Fed signaled there would be fewer interest rate cuts in 2025.
A December 13 note from Citi forecast that the Bank of Japan would raise interest rates three times in 2025, bringing the interest rate to 1%.
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