The governor said Bank of Japan Kazuo Ueda said at a news conference following the decision that the bank could take some time to monitor the implications of global economic uncertainty, adding that the monetary policy decision would be based on “economic, financial and price developments.”
The Bank of Japan kept interest rates at 0.25 percent, as expected.
Price movements
The dollar rose 1.06 percent to 144.14 yen, after hitting its highest level in more than two weeks.
The euro also rose 0.96 against the Japanese currency to 160.65 yen.
The dollar has been volatile since the start of the monetary easing cycle. US By cutting interest rates by 50 basis points on Wednesday.
But against the dollar, the euro fell 0.16 percent to $1.114300. The dollar index, which measures the greenback’s performance against major currencies, rose slightly to 100.96 points, just above a one-year low.
According to the CME Group’s FedWatch service, markets are pricing in a 41 percent chance that the Fed will cut interest rates by another 50 basis points in November.
The interest rate is expected to reach 2.85 percent by the end of 2025.
China unexpectedly kept lending rates unchanged today.
China has been hinting at further stimulus measures, partly enabled by the US Federal Reserve’s aggressive monetary easing that has pushed the dollar to a 16-month low against the yuan.
The Bank of England left interest rates unchanged on Thursday, with its governor saying the bank must be “careful not to cut too quickly or too sharply”.
The pound rose after the Bank of England left interest rates unchanged on Thursday, rising 1.26% on the week to $1.32895, after hitting its highest level since March 2022.
