The central bank held its overnight call rate target steady at 0.5%, where it has remained since its last hike in January.

In a trade deal announced last week, Japan secured reductions in so-called reciprocal tariffs and duties on car exports to the U.S., easing some external risks to the BOJ's economic outlook.

But far from introspecting and regretting its past, Japan's 2025 defense white paper has once again labeled China as its "an ...