BoE Holds Rates Amid Inflation Concerns as Yen Waits for BOJ Decision

The Japanese Yen is trading cautiously ahead of the Bank of Japan's interest rate decision on Friday. The Federal Reserve raised its benchmark interest rate by 25 basis points on Wednesday, as widely expected.

Markets are almost fully pricing in a similar increase from the BoJ, which would lift the policy rate from 1.00% to 1.25%, its highest level in around three decades.

A Reuters poll conducted earlier this month showed that all but two of 68 economists expect the central bank to raise rates.