BOJ Signals Hawkish Stance Amid Weakening Yen

The Bank of Japan (BOJ) is set to keep interest rates steady on Friday but signal its resolve to continue pushing up borrowing costs.

This comes after the government intervened in New York markets on Thursday to boost the weak yen, pulling it back from four-decade lows just hours before the BOJ's policy meeting.

Hawkish board member Hajime Takata may dissent and propose a hike to 1.25 percent, according to some analysts.

The BOJ's quarterly outlook report is expected to show revised up growth forecast for fiscal 2026 due to receding fears of a severe hit from the Middle East conflict.