The Japanese central bank decided to maintain the key interest rate unchanged at 0.5%, amid an expected movement estimating the impact of U.S. President Donald Trump's policies on the economy. This decision was unanimously approved during the central banking meeting amid growing concern about the impact of U.S. tariffs and their effect on Japan, which heavily relies on its exports.
The Japanese yen has experienced fluctuations following the announcement of the Japanese central bank's decision, where its value noticeably dropped but later returned to fluctuate again. The central bank is regarded as a reference for tariff definitions and considers their potential impact on various sectors, while awaiting Trump's announcement on proposed tariffs due for announcement on April 2.
The stability of the Japanese interest rate at 0.5% reflects the policymakers' interest in a detailed study of the effects of U.S. tariffs on the fragile Japanese economy, through continued monitoring of current global economic developments.
