BOJ Holds Rates at 0.75% as Inflation Forecast Hits
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- BOJ kept its policy rate steady at 0.75% after a 6‑3 split vote, matching Reuters‑polled analyst forecasts.
- Japan's core‑core inflation forecast rose to 2.8% for FY2026, up from 1.9%, as the Iran‑driven oil shock raises price risks.
- 10‑year JGB yields hit 2.496% on April 13, the highest since 1997, reflecting market pricing of higher inflation expectations.
Why it matters: Japanese households face higher living costs as BOJ lifts core inflation outlook to 2.8% and 10‑year JGB yields near 2.5%, squeezing corporate profits and real incomes.
