BOJ Stays Put, Signals Hawkish Resolve Amid Weak Yen

The Bank of Japan is expected to keep interest rates steady at 1% on Friday, but signal its resolve to continue pushing up borrowing costs.

This decision comes after the government intervened in the currency market by buying yen and selling dollars, which helped pull the sagging currency from four-decade lows.

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

The BOJ's quarterly outlook report is expected to revise up its growth forecast for fiscal 2026 due to receding fears of a severe hit from the Middle East conflict, but cut its inflation forecast due to subsidies and lower oil costs.