Bank of Japan Holds Interest Rate at 0.25% for Third Consecutive Meeting Amid U.S. Rate Cut

Dec 19, 2024, 02:56 AM

The Bank of Japan (BOJ) has decided to maintain its benchmark interest rate at 0.25%, as announced following its monetary policy meeting on December 19, 2024. This decision aligns with expectations and marks the third consecutive meeting where the BOJ has opted to keep rates unchanged. BOJ Governor Kazuo Ueda is scheduled to hold a press conference later to explain the reasons behind the decision. The move comes amid a backdrop where the U.S. Federal Reserve recently cut its rates by 25 basis points, setting the federal funds rate at 4.25%-4.5%. A CNBC poll had anticipated this outcome, with 13 out of 24 economists expecting the BOJ to hold rates steady in December before a potential hike in January. Additionally, a note from Citi forecasts that the BOJ will raise rates three times in 2025, bringing the rate to 1%.