BOJ Signals Resolve to Push Up Borrowing Costs Amid Inflation Risks

The Bank of Japan (BOJ) maintained its interest rates steady on Friday but signaled its commitment to continue pushing up borrowing costs. This move comes after the government's yen-buying intervention overnight failed to give the currency lasting support.

Board member Hajime Takata was the sole dissenter, calling for a rate hike to 1.25% to address inflationary risks from external demand shocks.

BOJ Governor Kazuo Ueda emphasized that many board members' inflation forecasts are high and skewed to the upside, which he will take into account in future policy meetings.

Ueda also highlighted several data points on medium- to long-term inflation expectations, some of which are solid or rising. He noted that if monetary conditions are accommodative, there's a chance they could speed up interest rate hikes.