Global Market: BOJ keeps rates unchanged, signals readiness for further hikes as yen remains under pressure

The Bank of Japan maintained its key interest rate at 1% on Friday. This decision followed government intervention to support the weakening Japanese yen. The central bank signaled potential future rate increases if inflation risks intensify. Its economic growth forecast for fiscal 2026 was upgraded in a quarterly report. Underlying inflation may exceed the 2% target, suggesting further tightening is possible.