Bank of Japan Holds Rate at 1%

The Bank of Japan maintained its key interest rate at 1% on Friday, as widely expected, and lowered its inflation outlook for the current fiscal year.

Governor Kazuo Ueda said the central bank would proceed cautiously, citing global economic uncertainties including the US-Iran war.

New forecasts showed the bank more confident about activity and inflation in the medium term, but near-term risks remain.

The decision came as the yen strengthened sharply, with suspected official intervention to prop up the currency.