BOJ’s Ueda Tamps Down Speculation of Rate Hike, Pressuring Yen
- Officials keep policy unchanged as expected by economists
- Yen weakness, outlier stance on stimulus set to continue
Bank of Japan Governor Kazuo Ueda tamped down speculation of a near-term interest rate hike after the central bank chose to stick with its ultra-easy stimulus, a decision that renewed downward pressure on the yen.
The BOJ kept its negative interest rate and the parameters of its yield curve control program intact on Friday in an outcome predicted by all 46 economists surveyed by Bloomberg. It also maintained a pledge to add to its stimulus without hesitation if needed, a vow that offers yen bears a reason to keep betting against it.