[MARKET UPDATE] USD/JPY moves lower as the BoJ held rates at 0.75% with the vote split at 6-3, with 3 advocating a hike to 1.0% amid upward risks to inflation; BoJ also upgraded inflation outlook and downgraded growth, with FY27 growth only modestly cut
The BoJ's decision to maintain rates at 0.75% is seen as dovish, especially with the split vote indicating internal disagreement on the necessity for a rate hike, suggesting uncertainty in their approach to inflation risks.
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[MARKET UPDATE] USD/JPY moves lower as the BoJ held rates at 0.75% with the vote split at 6-3, with 3 advocating a hike to 1.0% amid upward risks to inflation; BoJ also upgraded inflation outlook and downgraded growth, with FY27 growth only modestly cut
BoJ maintains its short-term interest rate at 0.75%, as expected; vote split 6-3 to hold (exp. near-unanimous); Nakagawa, Takata and Tamura voted to hike by 25bps to 1.0%
Japanese BoJ Interest Rate Decision 0.75% vs. Exp. 0.75% (Prev. 0.75%, Low. 0.75%, High. 1.00%)
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The upgraded inflation outlook contrasted with a downgrade in growth signals a potential future tightening if inflation persists, but for now, the market may react with a weaker yen as traders digest the implications for rates and economic health.
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