The Bank of Japan kept interest rates unchanged at 0.5%, which is in line with market expectations. In its latest monetary policy statement, the Bank of Japan has decided to maintain its loose monetary policy stance by maintaining a policy interest rate of 0.5%.

This decision is consistent with market expectations. Previously, all 52 surveyed economists expected the Bank of Japan to remain inactive at its March meeting.

The Bank of Japan still tends to observe economic data, especially whether inflation is sustainable, "said a market analyst. In the absence of significant inflation exceeding the target level, the central bank will not rush to adjust policies

The market expects that interest rates may be adjusted from April to May, and a policy turning point may be approaching. Although no adjustments were made at this meeting, 13% of economists surveyed expect the Bank of Japan to take action in April or May to further adjust monetary policy. This mainly depends on inflation data, wage growth, and fluctuations in the Japanese yen exchange rate.

If inflation continues to remain at a high level and wage growth is sufficient to support consumption, the Bank of Japan may take further tightening measures in the second quarter, "said Yuichi Kodama, an economist at Meiji Yasuda Institute.

The pressure of yen depreciation continues, and the policy path of the Bank of Japan is being closely monitored. Recently, the Japanese yen has continued to weaken against the US dollar, with an average exchange rate of 154.61 in February, a depreciation of 4.3% compared to the same period last year. Although the depreciation of the Japanese yen has to some extent enhanced export competitiveness, it has also intensified the pressure of imported inflation, posing a challenge to the policy balance of the Bank of Japan.

The depreciation of the yen has increased the cost pressure on imported goods, which may push up inflation and prompt the Bank of Japan to reconsider the timing of policy adjustments, "said a foreign exchange market expert. But currently, the Bank of Japan still hopes to wait for clearer economic signals

The Bank of Japan is cautiously observing, and future policy adjustments still depend on inflation trends. The Bank of Japan emphasized in its policy statement that it will continue to monitor the economic situation and ensure the sustainability of inflation.

In the absence of clear wage growth, consumption data, and global economic conditions, the central bank has chosen to temporarily suspend interest rate adjustments to avoid excessive impact on economic growth.