Tokyo: The Bank of Japan decided to keep its policy interest rate steady at 0.25%, according to an official statement on Thursday. The decision reflects the central bank's strategy to support the Japanese economy, which is expected to grow at a rate above its potential growth rate. According to Anadolu Agency, the Bank of Japan anticipates that annual inflation will be around 2.5% for the fiscal year 2024 and is projected to stabilize at about 2% for the fiscal years 2025 and 2026. The central bank highlighted several risks to the economic outlook, including uncertainties related to overseas economic activities, commodity prices, and domestic firms' wage and price-setting behaviors. The Bank of Japan had maintained a negative interest rate of minus 0.1% since 2015, but in March, the bank decided to increase the rate to 0.1%. Subsequently, it was raised again in July to its current level of 0.25%, marking the highest rate since the end of 2008.