The Bank of Japan on April 28 kept its benchmark interest rate at 0.75% for the second consecutive meeting, as the war in Iran closed the Strait of Hormuz and spiked oil prices. The policy board voted 6-3, signaling potential hawkishness ahead.
This follows the BOJ's March 19 decision to hold rates amid initial Middle East uncertainty, part of a broader pattern among central banks responding to regional tensions affecting oil supplies and global growth.
The BOJ statement highlighted risks from the Middle East conflict, noting Japan's heavy reliance on imported oil—about 20% of global traded oil passes through the now-closed Strait of Hormuz. Gasoline prices have surged, threatening moderate economic growth.
Three dissenting members pushed for tightening, per The Japan Times, amid hawkish signals. Tokyo's Nikkei 225 fell over 1% post-announcement.
This comes as the U.S. Federal Reserve and European central banks hold meetings this week, continuing the series of cautious policies amid geopolitical risks.
