Tokyo: The Bank of Japan (BOJ) decided to keep its benchmark interest rate unchanged. The bank clarified in a statement following the conclusion of the policy committee meeting that its target of approximately 0.5% for short-term interest rates will remain unchanged.

According to Qatar News Agency, the BOJ's decision comes amid uncertainty over the economic impact of US tariffs on Japan. The bank also announced plans to further reduce its monthly government bond purchases beyond April 2026.

The BOJ will aim to reduce purchases by about 200 billion yen (about $1.3 billion) every three months, compared to the current plan of about 400 billion yen (about $2.7 billion).