The BOJ policy decision earlier sees USD/JPY drop back from around 159.50 to sit closer to the 159.00 level currently.
The BOJ policy decision earlier sees USD/JPY drop back from around 159.50 to sit closer to the 159.00 level currently. The central bank opted to maintain the short-term interest rate at 0.75%.
However, there were three board members who dissented and wanted to push for a 25 bps rate hike today. The members who dissented were Takata, Tamura, and Nakagawa. The yen moved higher as this looks to be at least a step in the direction towards a rate hike in June, all else being equal.
That after the BOJ also upped its inflation forecasts for fiscal year 2026 to 2.8%. That marks a sharp increase from their previous projection in January of 1.9%. As such, it definitely sets the stage for their next move even if they are not quite ready to act upon that today just yet.