BOJ holds rates at 1% as Japan steps in to support yen
What's new: One board member pushed for a hike to 1.25%, and the central bank kept signaling more tightening ahead.
The Bank of Japan left its short-term policy rate at 1% on Friday, keeping borrowing costs at a 31-year high while reinforcing expectations of further increases. The decision came after Japan bought yen and sold dollars in New York trading overnight in an effort to slow the currency’s slide, a move that gave only brief support to the yen. Board member Hajime Takata dissented, calling for a rise to 1.25% because of inflation risks. The BOJ said it would keep raising rates as it weighs economic activity, prices and financial conditions, citing the Middle East, AI-related demand and exchange-rate moves as factors in the timing of future hikes.