Bank of Japan Maintains Interest Rates Amid Inflation Concerns
The Bank of Japan (BOJ) has decided to keep its policy rate steady at 1%, despite concerns that underlying inflation could surpass the 2% target. This decision was made with an 8-1 vote, where board member Hajime Takata suggested a rate increase to 1.25%. The BOJ's outlook indicates that core inflation is expected to rise above 2% in the latter half of the 2026 fiscal year, driven by factors such as wage increases, rising crude oil prices, and the yen's depreciation. The yen, which had weakened to around 163 against the dollar, saw a rally to 157.96 following intervention by Tokyo and a rate check by U.S. authorities. 
