BOJ Keeps Rates Steady in Takaichi Era's First Meeting.

BOJ Announces Interest Rate Decision

The Bank of Japan (BOJ) decided to keep its policy interest rate at 0.5% during a meeting held on Thursday. This decision was made at the first meeting following Sanae Takaichi's takeover as Japan's Prime Minister.

In Line with Economists' Expectations

BOJ's interest rate decisions were in line with economists' expectations. This situation reinforces investors' confidence in the markets.

Warnings and Criticisms from the U.S.

U.S. Treasury Secretary Scott Bessent criticized the weak yen during a meeting with Takaichi's new finance minister Satsuki Katayama, issuing an indirect warning to Tokyo. Bessent emphasized the importance of establishing sound monetary policy and communication to stabilize inflation expectations and prevent excessive exchange rate volatility.

Discussions on the Weak Yen

It is worth noting that the weak Japanese yen has long been a topic of discussion for former U.S. President Donald Trump. Trump had stated during his presidency that Tokyo was intentionally weakening its currency to gain unfair trade advantages. He also had a meeting with Takaichi, who defended low-interest policies and labeled BOJ's potential interest rate hikes as "foolish."