USD/JPY flows: BoJ on hold as expected

BOJ leaves rate at 0.5% as expected with inflation forecast revised higher. Core CPI for 2025 is revised to 2.7% from 2.2%, 1.8% in 2026 and 2% in 2027; while core-core is revised to 2.8% from 2.3%, 1.9% in 2026. The inflation forecast suggest the BoJ will be in no rush to tighten multiple times with 2026 revision remain below 2%.

USD/JPY is trading 0.43% lower at 148.83.