The Bank of Japan (BoJ) kept its benchmark interest rate unchanged at 0.5% in a unanimous vote on Wednesday, amid uncertainty over the effect of United States President Donald Trump's protectionist trade policies.
"Japan's economy has recovered moderately, although some weakness has been seen in part. Overseas economies have grown moderately on the whole," the statement announcing the decision said. "Concerning risks to the outlook, there remain high uncertainties surrounding Japan's economic activity and prices, including the evolving situation regarding trade and other policies," the BoJ added.
The central bank hiked the rate by 25 basis points from 0.25% to 0.5% in January, bringing it to its highest level in 17 years.
