BOJ Signals Hawkish Resolve Amid Yen Intervention

The Bank of Japan (BOJ) is expected to keep interest rates steady at one percent on Friday, but signal its resolve to continue pushing up borrowing costs. This comes after the government intervened in the markets to boost the weak yen.

Japan conducted a yen-buying, dollar-selling market intervention in New York markets on Thursday, pulling the sagging currency from four-decade lows. The move has put pressure on the BOJ to show its hawkishness.

Hawkish board member Hajime Takata may dissent and propose a hike to 1.25 percent, some analysts say. The BOJ meeting follows that of the US Federal Reserve on Wednesday, where three dissenters called for a quarter-percentage-point hike.