Japan's central bank held rates steady at 0.75% in March 2026, citing inflation risks and a weak yen.

The Bank of Japan held its key interest rate steady at 0.75% on March 19, 2026, citing rising oil prices and Middle East tensions as key risks to inflation and growth. Despite a dissenting vote for a rate hike to 1%, the central bank opted for a wait-and-see approach, balancing inflation pressures against fragile economic recovery. The yen weakened near 160, raising concerns about potential government intervention. Markets expect a possible rate increase later in 2026, depending on wage data and inflation trends.