USD/JPY flows: BoJ Rates Left Unchanged

The BoJ has kept rates unchanged at 0.5% as per our forecast. While they continue with their rhetoric of "will continue to raise policy rate if economy, prices move in line with its forecast", they have also revised core CPI forecast lower but core-core higher and highlighted risk associated to tariffs. Moreover, GDP has been halved to 0.5% in 2025 and 0.7% in 2026, from 1.1% and 1%.

USD/JPY is trading 0.58% higher at 143.88.