The Bank of Japan (BOJ) has decided to keep its benchmark interest rate at 0.25% despite uncertainty after recent elections. BOJ Governor Kazuo Ueda confirmed this decision, maintaining the bank’s commitment to its inflation target and gradual economic recovery.

In his press conference, Ueda noted the BOJ’s plan to evaluate domestic and global economic trends carefully, considering Japan’s fragile recovery and political landscape. He emphasized that there is no preset schedule for future rate hikes, and decisions will rely on data from upcoming meetings.

Analysts describe the BOJ’s stance as "hawkish," expecting a potential rate increase soon, especially as the yen weakens. Political developments, such as Prime Minister Shigeru Ishiba’s proposed $84.6 billion supplementary budget, could further shape BOJ policies in the coming months.