BOJ Keeps Rates Steady, Warns of Rising Inflation Risks

The Bank of Japan (BOJ) kept its policy rate unchanged at 1% on Friday, despite inflation risks remaining active across Japan's economy.

The BOJ voted 8-1 to hold rates steady, with Board member Hajime Takata dissenting and proposing raising the policy rate to 1.25%.

The decision came as the central bank warned that core inflation may rise clearly above its 2% target from September, citing wage increases being passed into selling prices and crude oil costs continuing to add pressure.

The yen swung sharply after Japan reportedly intervened to support the currency, which had weakened near 163 per dollar before rallying towards 157.96.