BOJ Keeps Rates Steady but Signals Further Hikes Ahead

The Bank of Japan (BOJ) has kept its interest rates steady at 1% after a two-day meeting. However, in a signal that it is not done yet with rate hikes, the central bank emphasized its readiness to continue increasing borrowing costs to combat inflation risks.

The decision was made by an 8-1 vote, with Board member Hajime Takata dissenting and calling for a 1.25% hike instead. This suggests that there are still differing opinions within the BOJ regarding the best course of action for monetary policy.

BOJ Governor Kazuo Ueda will hold a news conference at 3:30 p.m. (0630 GMT) to explain the policy decision in more detail.