TOKYO, March 19 (Xinhua) -- The Bank of Japan (BOJ) left the benchmark short-term interest rate unchanged as it wrapped up a two-day policy meeting on Wednesday, amid rising inflation in Japan and growing uncertainties overseas.

The central bank, which has been shifting away from a decade of ultra-easy monetary policy, decided to keep the policy rate, an uncollateralized overnight call rate, on hold at 0.5 percent, as it examines the effects of the U.S. government's high tariffs policy on the domestic economy.

The BOJ raised the current rate from 0.25 percent at the previous meeting in January, the first since July 2024.

"There remain high uncertainties surrounding Japan's economic activity and prices," the BOJ said in its post-meeting policy statement, citing overseas trade policies as potential risks amid heightening tensions triggered by U.S. tariff policies and countermeasures by other countries.

While sustained wage growth momentum in Japan is seen providing a tailwind for further rate hikes, the decision suggests the BOJ is taking a cautious approach toward the next hike, which is expected to bring the policy rate to 0.75 percent, the highest level in about 30 years, analysts said.

The Japanese central bank ended its negative rate policy in March 2024 and raised its policy rate again in July and January. Enditem

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