Bank of Japan keeps benchmark interest rate unchanged at 0.25%

Japan's economy has recovered moderately, although some weakness has been seen in part, the central bank said. There “remain high uncertainties surrounding Japan’s economic activity and prices,” it noted in a statement.

“In particular, with firms’ behaviour shifting more toward raising wages and prices recently, exchange rate developments are, compared to the past, more likely to affect prices,” it said.

Headline inflation in the country in October was 2.3 per cent, the 30th month in a row that inflation has crossed the central bank’s 2-per cent target.

The employment and income situation has improved moderately. Private consumption has been on a moderate increasing trend despite the impact of price rises and other factors, the statement added.

ALCHEMPro News Desk (DS)