Policy Divergence at BOJ Intensifies as Ueda's Comments Become Key for Yen

BOJ Maintains Status Quo Amid Policy Divergence

The Bank of Japan has decided to keep interest rates unchanged ahead of next month's elections amid uncertainty over fiscal policy, inflation, and geopolitical risks. In the latest decision, eight members voted to maintain the short-term interest rate at 0.75%, with only one proposing an increase to 1.0%.

• Kazuo Ueda's comments could become the key factor for the yen's direction
• Analysts warn yen may face renewed pressure without clearer rate signals
• Prior tax-cut pledges disrupted bond markets

Market Remains Wary of Hawkish Signals

Experts caution that if Governor Ueda fails to send a clear message about further rate hikes, particularly amid sensitivity around the upcoming elections, the yen could face renewed pressure.