Japan’s central bank holds rates at 1.0% while reportedly intervening to stabilize the yen amid inflation concerns.
The Bank of Japan (BOJ) kept interest rates steady at 1.0% on Friday, aligning with market expectations. The decision followed a reported currency intervention to defend the yen, which briefly rallied 3.5% against the USD near the 160 level.
Markets had anticipated the rate hold, with eight of nine Policy Board members voting in favor. Only one member proposed a 0.25% hike. The BOJ also warned of rising consumer price inflation in the latter half of the year.
The yen’s sharp rebound was attributed to coordinated intervention efforts, including reported action by South Korea’s central bank. The move marks the yen’s strongest one-day gain in recent months.