Bank of Japan holds rates

The Bank of Japan has decided to maintain its short-term policy rate at 0.75% following a rare split vote among its board members.

While the bank issued more hawkish guidance, it remains cautious as the yen continues to hover near historic lows.

Governor Kazuo Ueda noted that while inflation forecasts have been raised, the ongoing energy shock from the Iran war poses a significant risk to domestic growth.

Markets are now closely watching for signals of a potential rate hike in June as the central bank attempts to balance price stability with economic recovery.