@cryptobagel
#BOJ #Japan #Rates #Debt
The Bank of Japan kept rates unchanged at 0.75% on Friday after the December hike. Faster tightening is hard due to financial system risks.
The vote was 8–1, with Takata pushing for an immediate hike.
A renewed yen sell-off lifted the 2026 core inflation forecast to 2.2% (from 2.0%), pointing to more hawkish policy ahead.
After recent stress, the JGB market stabilized—likely with BOJ support—as its bond holdings rose ¥0.7tn to ¥539.6tn in a week. Structural problems remain.
Update: BOJ appears to have stepped in with yen intervention.
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