Bank of Japan holds rates at 0.25%, yen weakens to one month low

The Bank of Japan kept its benchmark interest rate steady at 0.25%, citing the need to evaluate the impact of financial and foreign exchange markets on the country’s economic activity and prices. The decision surprised economists who had anticipated a 25 basis point hike, leading to a 0.3% weakening of the yen against the dollar and a 0.74% decline in the Nikkei 225 stock index. The central bank noted a split 8-1 decision, with board member Naoki Tamura advocating for a rate increase, while emphasizing the high uncertainties surrounding Japan’s economic conditions and prices.

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