BoJ Split Vote Triggers Yen Rout as Rate Hike Fails to Boost Confidence

The Japanese yen has continued its downward trend after the Bank of Japan's split vote to raise interest rates. Despite the hike, which took effect on Thursday, the yen remains under pressure due to lingering doubts about future rate increases.

On September 18, the BoJ raised its benchmark interest rate from 1% to 1.25%, a move that had been expected by traders. However, two board members, Asada and Sato, voted against the increase, citing concerns that inflation was not high enough to justify it.

The decision was seen as a split vote, with some board members supporting the rate hike while others opposed it. This uncertainty has contributed to the yen's decline, which has now reached its fifth consecutive day of losses.