In a statement on Tuesday, the BOJ raised its benchmark rate to 1%, a quarter of a percentage point. Additionally, it stated that it would cease its trimming of purchases and continue to acquire bonds at a monthly rate of about ¥2 trillion ($12.5 billion) starting in April 2027.
According to a Bloomberg Report, economists and market players mostly anticipated the decisions. Toichiro Asada, a board member, dissented from the 7-1 vote on the rate decision.
Also Read: Fed’s 2026 rate path is underpriced by markets if this PGIM call is right
Following the statement, the yen slightly weakened to 160.34 per dollar. Since last week, it has remained close to the range that led the Finance Ministry to intervene in the currency market in late April, hovering around the 160 level.
The meeting was held in response to Governor Kazuo Ueda’s hospitalisation last week for treatment of a liver cyst infection. This was the first time the board had convened without a governor since an emergency meeting in 2010. According to the BOJ, Ueda intended to present his opinions to the board without taking part in the voting.
(Edited by : Juviraj Anchil)
