The Bank of Japan's Policy Board has decided to maintain the overnight call rate, the key short-term interest rate, at 0.25 percent -- the rate it adopted last July when it scrapped its zero interest rate policy. The final conclusion of the Policy Board's discussions last week departs somewhat from BOJ Gov. Toshihiko Fukui's past statements.
Mr. Fukui had said interest rate adjustment -- meaning gradual interest rate hikes -- was necessary for steady economic expansion. The decision this time not to raise the key interest rate amid economic expansion shows that the central bank could not help paying attention to recent reports of weak personal consumption and price movements.
Still, the fact that three of the board's nine members called for a higher rate points to a growing undercurrent within the BOJ that favors raising interest rates.