Bank of Japan Anticipates Ongoing Economic Growth Despite Inflation Challenges and International Uncertainties

The minutes of the Bank of Japan’s latest monetary policy meeting, released on Tuesday, revealed that committee members remain optimistic about the country’s economic recovery continuing at a steady pace, despite some signs of a slight slowdown in growth. The minutes, covering the discussions held on June 16–17, noted that core inflation remains subdued due to the gradual deceleration in economic expansion.

Members also pointed to potential risks stemming from U.S. trade policies and their possible impact on Japan’s recovery path. During the meeting, the central bank decided to keep its key interest rate unchanged at 0.5% while gradually reducing the pace of Japanese government bond purchases starting in April next year. The plan involves cutting annual purchases by 400 billion yen until the first quarter of next year, followed by quarterly reductions of 200 billion yen from the second quarter onward, amid rising uncertainty in global financial markets and trade policies.