BOJ Stands Firm on Rate Hikes Amid Fading Support for Yen
Bank of Japan (BOJ) Governor Kazuo Ueda signaled his resolve to continue pushing up borrowing costs, despite the government's failed attempt to boost the yen through intervention.
In a post-meeting news conference, Ueda mentioned that many board members' inflation forecasts are high and skewed to the upside. He plans to take this into account when chairing future policy meetings.
Ueda also highlighted the impact of currency volatility on inflation, stating that it may be becoming bigger than in the past. With underlying inflation nearing 2%, he emphasized the importance of focusing on upside price risks.
The BOJ kept interest rates steady, but Board member Hajime Takata was the sole dissenter, calling for a rate hike to 1.25% to respond to inflationary risks from external demand shocks.