Bank of Japan Holds Rates Steady at 1%, Upgrades Economic View

The Bank of Japan (BOJ) maintained its policy rate at 1% following its two-day meeting, a decision widely anticipated after last month's rate hike to a 31-year high. The central bank also revised its economic growth forecast upward, signaling confidence in the economy's trajectory towards further policy normalization. Governor Kazuo Ueda indicated that the BOJ would continue to raise borrowing costs in response to economic and price trends, while remaining mindful of inflation overshooting its 2% target. The yen initially showed little reaction but later strengthened, with traders alert to potential intervention.