【Yen Trend】Bank of Japan Maintains Interest Rates Unchanged 100 JPY Exchanges for 4.91 HKD

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The Bank of Japan announced its monetary policy decision, voting 8-1 to keep interest rates unchanged at 0.75%, marking the second consecutive hold. The Bank of Japan stated that due to the impact of Middle East conflicts, financial markets are showing signs of instability, with crude oil prices soaring significantly. The future developments warrant close attention. The USD/JPY exchange rate is 159.65, and the HKD per 100 JPY is 4.91.

Among them, BOJ Policy Board member Takada Sōtō voted against the decision, suggesting raising the short-term interest rate target from 0.75% to 1%, indicating that the price stability goal has been largely achieved. Due to the second-round effects of price increases triggered by overseas geopolitical tensions, Japan’s inflation risks are skewed upward.

The Bank of Japan stated that it will implement monetary policy appropriately from the perspective of sustainably and stably achieving the 2% inflation target, and will continue to raise policy interest rates based on improvements in the economy and prices. This statement continues the previous gradual rate hike guidance and does not signal an early tightening.

The Bank of Japan indicated that the core Consumer Price Index (CPI) may temporarily slow its year-on-year increase to below 2%, but will accelerate again due to rising oil prices.

Japan’s economic outlook faces risks including Middle East tensions, oil price trends, and market dynamics such as foreign exchange.


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