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Bank of Japan holds key rate as West Asia war mars outlookBank of Japan keeps rate at 0.75% amid Iran conflict and rising energy costs, lifts core inflation forecast to 2.8, cuts growth to 0.5, yen edges up, other major central banks hold steadyBy CNBCTV18.com April 28, 2026, 9:07:43 AM IST (Published)2 Min ReadThe Bank of Japan maintained its benchmark interest rate. This decision comes in the light of an economic outlook that has been clouded by uncertainty surrounding the conflict in Iran and the ensuing surge in energy costs.

At the conclusion of its two-day policy meeting on Tuesday, the BOJ maintained its policy rate at 0.75%, according to a statement from the central bank. Following a 6-3 split decision, the yen gained 0.1% against the dollar.

In a quarterly outlook report, Governor Kazuo Ueda's board increased its prediction for core inflation to 2.8% for this fiscal year, higher than anticipated. The period's economic growth has been reduced from 1% to 0.5%.

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As the US discussed a proposal from Tehran and the vital Strait of Hormuz remained mostly impassable, Brent crude increased for the seventh day in a row, hovering slightly around $109 per barrel.

It is not just Japan; the US Fed is also set to announce its policy. At the conclusion of its two-day meeting on Wednesday, the US Federal Reserve is generally anticipated to maintain current interest rates.

This week, investors will also be paying attention to decisions made by other central banks, such as the Bank of England and the European Central Bank.Continue Reading(Edited by : Juviraj Anchil)TagsBank of JapanBank of Japan BOJ