Overview
- The Bank of Japan, which decided Tuesday, kept the short‑term rate at 0.75% in a 6–3 vote.
- Three board members called for an immediate 0.25‑point hike to 1.0%, signaling pressure to tighten soon.
- New projections raise core inflation for fiscal 2026 to 2.8% and cut growth to 0.5% as higher oil costs bite.
- The yen trades around 159–160 per dollar as Finance Minister Satsuki Katayama signals readiness to curb sharp swings.
- Many traders now look for a move to 1.0% by June as Japan’s energy import needs collide with a closed Hormuz strait and oil above $100.