Bank of Japan Holds Policy Rate at 0.25% in September 2024, Stressing Data Dependency

The Bank of Japan decided to hold its short-term policy interest rate at 0.25% at its monetary policy meeting concluded on 20 September 2024. The decision was published in the Bank's Statement on Monetary Policy. The Bank had raised rates earlier in the year.

Governor Kazuo Ueda, speaking after the decision, emphasised the Bank's data-dependent approach and indicated that policymakers were awaiting greater clarity on the trajectory of the United States economy before acting again.

Governor Ueda stressed that the Bank of Japan would continue to monitor economic indicators, price data, and financial market developments carefully.

The Bank of Japan also noted in its communications that it would remain attentive to developments in financial and foreign exchange markets, recognising that sharp moves in the yen can have significant implications for import prices, corporate earnings, and consumer confidence. The rate was left at 0.25%, and the Bank indicated it would reassess as new information became available.