BoJ Holds Rate Steady at 1% as Yen Muted Despite Hawkish Ueda

The Bank of Japan maintained its key rate at 1% in a widely expected decision, with an 8-1 vote split. Governor Ueda delivered remarks that struck a hawkish note, but the Japanese Yen's reaction was muted.

TD Securities noted the lack of significant price action, attributing it to a patient BoJ approach that is keeping the currency within a broad trading range. The desk expects the next 25-basis-point tightening step to come only later, though it did not specify a timing.

The muted yen response suggests markets had largely priced in the steady rate and the hawkish rhetoric, leaving USD/JPY to consolidate near current levels.