Bank of Japan keeps rates steady at 8-1 vote, while yen intervention impact weakens as USD/JPY recovers 113 pips.
The Bank of Japan left interest rates unchanged in an 8-1 vote, aligning with expectations. The decision followed recent yen intervention efforts, which briefly weakened USD/JPY before the pair rebounded 113 pips in early trading.
Japan’s June industrial production rose 1.3% month-over-month, beating the 0.7% forecast, while Tokyo’s July core CPI climbed 1.9% year-over-year, above the 1.7% estimate. Unemployment held steady at 2.5%, matching expectations. Elsewhere, China’s July manufacturing PMI missed at 49.2, and Australia’s Q2 PPI accelerated to 3.6%.
Markets reacted with WTI crude down $1.25 to $82.36, gold falling $26 to $4075, and the S&P 500 futures up 0.3%. The Kospi surged 14% amid a rebound in chip stocks, including SK Hynix, after a hedge fund fire sale.