BOJ Keeps Rates Steady, Hints at Further Rate Hikes to Combat Inflation

The Bank of Japan (BOJ) maintained its short-term policy target at 1% on Friday, signaling its readiness to continue pushing up borrowing costs to combat mounting inflation risks. In a two-day meeting that ended on Friday, the central bank decided by an 8-1 vote to keep interest rates steady. Board member Hajime Takata dissented from the decision, calling for a 1.25% hike.

The BOJ's decision is aimed at controlling inflation, which has been rising due to various factors including supply chain disruptions and increased demand. Governor Kazuo Ueda will hold a news conference at 3:30 p.m. (0630 GMT) on Friday to explain the policy decision.