BOJ Keeps Rates Steady, Signals Possible Hikes Amid Inflation Pressures

The Bank of Japan (BOJ) has decided to keep its interest rates steady at 1% in a meeting ending on Friday, while signaling the possibility of future hikes amid mounting inflation pressures.

The BOJ's decision comes as the country faces inflation pressures from the Middle East conflict, a weakening yen, and strong global demand for artificial intelligence, according to reports by Detik Finance.

Governor Kazuo Ueda faces the challenge of using hawkish communication to curb yen depreciation without antagonizing a government wary of further monetary tightening.