FILE PHOTO: Japanese national flag hoisted atop of the Bank of Japan headquarters building is seen between traffic signals in Tokyo, Japan January 23, 2025. REUTERS/Issei Kato/File Photo

TOKYO (Reuters) -The Bank of Japan held off on raising interest rates on Thursday but repeated its pledge to continue increasing borrowing costs if the economy moves in line with its projections.

As widely expected, the central bank maintained short-term interest rates at 0.5%. Board members Naoki Tamura and Hajime Takata dissented to the decision, repeating their proposals made in September to raise rates to 0.75%.

BOJ Governor Kazuo Ueda will hold a news conference to explain the decision at 3:30 p.m. (0630 GMT).

(Reporting by Leika Kihara, Makiko Yamazaki, Satoshi Sugiyama and Kantaro KomiyaEditing by Chang-Ran Kim)