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Published 20 days ago • loading... • Updated 19 days ago
BOJ holds rates at 1%, warns of underlying inflation exceeding 2% target
The 8-1 decision keeps borrowing costs at 1% as board members warn weak yen-driven price pressures could push inflation above target.
The Bank of Japan held its policy rate steady at 1% with an 8-1 vote while warning that underlying inflation in Japan could exceed its 2% target.
BOJ Governor Kazuo Ueda emphasized monitoring upside inflation risks and indicated that future policy debates will consider these risks, signaling possible rate hikes.
Japan's yen weakened significantly but rallied briefly after Tokyo intervened by selling dollars and buying yen, with U.S. authorities conducting a 'rate check' as a precursor to intervention.