The Bank of Japan (BoJ) held interest rates steady at 1.0%, its highest level since 1995, with eight out of nine Policy Board members voting for the decision. The yen surged as much as 3.5% against the US dollar following a reportedly coordinated currency intervention by Japan’s and South Korea’s central banks near the 160 level. The BoJ warned that Consumer Price Index (CPI) inflation is expected to accelerate clearly above 2% from the second half of fiscal 2026. Analysts view the intervention as a signal that the Ministry of Finance remains uncomfortable with excessive yen weakness, with the line in the sand likely positioned around a 162-165 zone per dollar.
Source: Read the original article
