Markets await the Bank of Japan’s updated economic projections after the yen rebounded sharply on suspected FX intervention.
The Bank of Japan is set to keep its policy rate unchanged at 1% on Friday, following a two-day meeting. The decision comes after the yen surged from above 163 to below 158 against the USD in minutes, fueling speculation of official intervention.
Investors will focus on the BoJ’s quarterly Outlook Report and Governor Kazuo Ueda’s press conference for signals on future tightening. The central bank raised rates in June but has since adopted a wait-and-see approach amid economic uncertainty.
Markets still price in further hikes by year-end, with October and December as potential windows. The yen’s recent strength may influence the BoJ’s tone but is unlikely to trigger immediate action.