India, July 31 -- The Bank of Japan maintained its interest rate but lifted its inflation outlook due to rising food prices, which had added expectations of an rate hike as soon as in October. The policy board unanimously decided to hold the uncollateralized overnight call rate to remain at around 0.5 percent.
Previously, the bank had raised the benchmark rate to the current level from 0.25 percent in January.
In its quarterly Outlook for Economic Activity and Prices report, released Thursday, the bank raised its inflation outlook citing the rise in food prices. For the fiscal 2025, inflation forecast was lifted to 2.7 percent from 2.2 percent.
Inflation forecast for the fiscal 2026 was raised marginally to 1.8 percent from 1.7 percent a...