Only one Bank of Japan board member supports a rate hike; Kazuo Ueda's statement will determine the direction of the yen

Jinse Finance reported that due to concerns over fiscal policy, inflation, and geopolitical tensions, as well as ongoing market volatility, the Bank of Japan has chosen to keep interest rates unchanged ahead of next month's general election. The Bank of Japan voted 8 to 1 to maintain the short-term interest rate at 0.75%, with only Policy Board member Hajime Takata believing that the price stability target has been basically achieved and proposing to raise the short-term rate target from 0.75% to 1.0%. The market is now on high alert for any hawkish signals from the central bank. Previously, Sanae Takaichi's pledge to lower the consumption tax triggered turmoil in the Japanese government bond market and dragged down the yen. Some analysts warn that if Bank of Japan Governor Kazuo Ueda does not clearly indicate further rate hikes—especially as the Bank of Japan seeks to avoid political backlash ahead of the early general election on February 8—the yen may face a new round of pressure. (Golden Ten Data)