FX.co ★ BoJ Holds Rates

The Bank of Japan (BoJ) maintained its key short-term interest rate at 0.5% in its May meeting, marking the highest level observed since 2008. This decision, anticipated by the market, was reached unanimously due to apprehensions about potential economic slowdowns induced by U.S. President Donald Trump's tariff measures, which could impact both the U.S. and global markets. Ongoing trade negotiations between Tokyo and Washington may also play a crucial role in shaping the trajectory of future interest rates.