The Bank of Japan leaves interest rates at 0.25% and the yen weakens
The Bank of Japan (BOJ) headquarters is seen behind the cherry blossoms in Tokyo on March 20, 2023.
Kazuhiro Nogi | Afp | Getty Images
The Bank of Japan left its key interest rate unchanged at 0.25% on Thursday.
The decision comes a day after the Federal Reserve cut interest rates by 25 basis points, bringing the benchmark rate to between 4.25% and 4.5%.
The yen After the interest rate decision, the US dollar weakened by 0.16% against the dollar to trade at 155.06.
The BOJ said in its statement that the decision to maintain rates was a split 8-1 decision, with board member Naoki Tamura favoring a 25 basis point increase.
The BOJ’s decision was in line with a CNBC poll that found 13 of 24 economists expected the BOJ to leave its key interest rate unchanged in December before raising it at its next meeting in January.
The survey was conducted between December 9 and 13, before the Fed signaled there would be fewer rate cuts in 2025.
A Dec. 13 note from Citi predicted the BOJ will hike three times in 2025, bringing the interest rate to 1%.
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