BOJ intervenes to defend yen near 160, holds rates steady
Summary
Japan’s central bank kept its benchmark rate unchanged at 1.0%, matching market expectations. Eight of nine Policy Board members backed the hold, while one member wanted a 0.25% hike. The decision came as the yen jumped sharply, with moves widely linked to suspected central bank intervention; reports also suggested possible coordination with South Korea and even US rate checks. Officials did not comment on the currency moves, but the Bank of Japan warned that inflation could strengthen, saying CPI growth is likely to rise clearly above 2% from the second half of fiscal 2026.
